Zinc on MCX settled up 1.55% at 144.35 continuing its firm trend rising for a fourth straight session as funds continue to pile into the market. 

Expectations of potential shortages have fuelled buying in zinc but an inventory overhang means the metal is readily available for consumers. Total world stocks of zinc at the end of April stood at about 1.5 million tonnes, according to the International Lead and Zinc Study Group. Mine-supply growth is faltering and demand improving, according to Morgan Stanley, helping boost prices 16 %t this quarter.

Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 1,000 to 327,900 tonnes this week. Zinc stocks in Guangdong and Tianjin grew noticeably. Arriving shipments increased as zinc smelters sold proactively at high zinc prices. 

Technically market is under fresh buying as market has witnessed gain in open interest by 1.39% to settled at 10305 while prices up 2.2 rupee, now Zinc is getting support at 142.3 and below same could see a test of 140.2 level, And resistance is now likely to be seen at 146.2, a move above could see prices testing 148.

                              Trading Ideas

1. Zinc trading range for the day is 140.2-148.         

2. Zinc prices rallied continuing its firm trend rising for a fourth straight session as funds continue to pile into the market.                       

3. Total world stocks of zinc at the end of April stood at about 1.5 million tonnes, according to the International Lead and Zinc Study Group.