Zinc prices traded firm at Rs 221.10 per kg on March 22 as participants increased their long position as seen by the open interest. The base metal extended gain after a gap up open tracking positive global trend.
Zinc prices had gained 2.05 percent or Rs 4.4 last week on the MCX.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The Relative Strength Index (RSI) is at 52.09 which indicates positive momentum in prices.
Shanghai zinc prices jumped to their highest in more than three years, buoyed by prospects of demand improvement in top consumer China as the traditional peak consumption period starts.
The US dollar trades lower at 91.86, or down 0.07 percent in the evening session against rival currencies.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said MCX Zinc is sustaining above Rs 219.50-220 levels since morning. Prices may trade with bullish momentum and test Rs 223-224 levels in the upcoming session.
In the futures market, zinc for March delivery touched an intraday high of Rs 221.60 and a low of Rs 219.80 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 202.75 and a high of Rs 233.95.
Zinc delivery for the March contract soared Rs 1.60, or 0.73 percent, to Rs 221.10 per kg at 19:10 hours with a business turnover of 1,948 lots. The same for April contract gained Rs 1.40, or 0.64 percent, to Rs 221.70 per kg with a turnover of 1,601 lots.
The value of March and April’s contracts traded so far is Rs 510.88 crore and Rs 100.69 crore, respectively.
MCX Zinc is expected to trade in a sideways trend having support at Rs 219 level and resistance at Rs 222 level, said Motilal Oswal.
MCX Zinc price is trading under an ascending triangle pattern, and the price is expected to trade positively. Any breakout above Rs 221.50 would push the price higher towards Rs 223-223.50 levels in intraday, according to Axis Securities.
The momentum indicator Relative Strength Index (RSI) is trading at 68 indicating bullishness in the prices.
At 1345 (GMT), the base metal was up 0.90 percent at $2,871.25 per tonne in London trading.
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