Zinc futures fall-dollar bounce, Choice Broking, says the bullish outlook

Zinc prices fell to Rs 235.80 per kg as participants increased their short positions, which appear to be in open interest. The base metal is traded steady to lower on a day to day was in the evening session of the concern that the tightening of US monetary policy and a weaker demand in China, the biggest consumer.

On the MCX, June, zinc fell to 1.50 rupees, or 0.63 per cent, to 235.80 rs. per kg), while the value of the 2,225 tons, is on the market. At the same time, the fall of 1.65 rupees, or 0.70 per cent, to 235.20 rupees per kg, with a capacity of 207 tons.
The value of the June and July contracts sold so far has been Rs 495.99 crore and RS 4.12 crore, respectively.

The US dollar index was trading at over $ 90.03 to climb to 0.07 percent against the major currencies in the evening session.

Sunand Subramaniam, senior research fellow at the Option Broking, said: “basically, the next month, we expect the global future of the zinc, and MCX will be more bullish for reporting a pick up in economic data in the Asian markets, including in the united states. This will increase the demand of the international market, which is the mining and refined metal production is expected to increase. “

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“In spite of the fact that, in recent months, production was expected to decrease with a decrease in the demand for or use of metals and ores. However, we expect that demand will continue to be strong, particularly in China and other Asian countries, with a positive economic data. The expectation of an increase in demand for steel, e-vehicle, will support prices, ” Subramanyam said.

According to the International Lead and Zinc Research Group (ILZSG), the global production of zinc, on the 21st of March, the increase in 1159.5 million tonnes higher than that of 1143.4 million tonnes in the previous month. Zinc consumption, as reported above, the 1157.4 thousand tons, the 21st of March, compared with a 1162.9 million tonnes per year, on the 21st of February.

Technical specifications

Non-ferrous metal trading, 20, 50, 100, and 200-day moving averages, but the period of 5 days, the moving average of the daily chart. The Relative strength index, the Global Momentum Index (RSI), which is located in the 51.78 show that the rate of movement is natural.

At 1327 GMT, the price of the base metals at the London fell 0.72 per cent, at $2,997. 50 metric ton.

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Trading Strategies

MCX Zinc trading, with the ultimate negative bias. If the price is below the resistance level of Rs 237.5-238.2, we can expect the market to decline during the evening session, a test of the Rs 235-234 the level of the lower side.
Geojit Financial Services, said: “the recovery of the transactions above Rs 238.40 can lead to an increase in the price. Failure to move higher, too, on the same level, it could put downward pressure on prices is lower than for the session.”

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