Archive image: Zinc bullion feel stacked in a warehouse | Photo credit: Seongonon Cho
Zinc prices are trying to recover after having fallen abruptly for more than three weeks. The zinc futures contract in the exchange of multiple products (MCX) fell to a minimum of ₹ 243.90 per kg in the first half or last week. It has recovered from there, recovering part of the loss. The contract is current from ₹ 254.6 per kg.
Perspective
Zinc’s futures contract has strong support in ₹ 245. This has a hero very well. This week’s price action will be important. The key resistance is ₹ 260. Failure to comply with this obstacle can drag the contract to ₹ 250 and ₹ 245 again. In that case, there is the possibility of witnessing a lateral consolidation between ₹ 245 and ₹ 260 for some time.
On the other hand, if the contract violates ₹ 260, it can gain impulse. Such rest can carry the Zinc MCX contract to ₹ 275 next week.
As such, this week’s price action will be crucial. That would be key to deciding the movement for zinc in the future.
Commercial strategy
Merchants have to adopt a waiting and observation approach for a few days. Take the new new ones only at a break above ₹ 260. Keep the stop-loss in ₹ 255. Sire the stop -los until ₹ 263 as soon as the contract moves to ₹ 267. Move the stop -los until ₹ 268 when the price touches ₹ 271. Exit the long positions to ₹ 273.
Posted on April 14, 2025