Short selling hammers Zinc at MCX: Dani Commodities

Dani Commodities has come out with its report on MCX Zinc, Gold, Silver, Copper, Lead, Zinc, Aluminium, Nickel, Crude Oil and Natural Gas. According to the research firm, MCX Zinc is likely to find support at Rs 102.8 per kg.

Zinc for delivery in July 2012 dropped by 0.2% or Rs 0.4 at Rs 103.4 per kg and tested an intraday high of Rs 103.35 per kg and low of Rs 103.4 per kg on Tuesday, 17 July. Short selling with 3% rise in its open interest to 3710 lots hammered the metal. Zinc traded in range bound during July 2012 and was finding strong support at Rs 103 per kg. The contract traded just below 9-day EMA and RSI stood at 47.25.

At LME, Zinc surged by 1.5% at $1884 per tonne on Tuesday. Zinc snapped earlier losses as the hopes on Federal Reserve to introduce stimulus measures buoyed the sentiment. Also, the improvement in the US housing data also helped the metal to end with huge gains.

MCX Zinc is likely to find support at Rs 102.8 per kg and Rs 102.4 per kg and resistance at Rs 104.2 per kg to Rs 105 per kg on Wednesday, 18 July.

MCX GOLD
International: Major Support at USD1550. Bullish till USD1625.
Domestic: Sell below 29220, Stop loss 29290, Target 29150.

MCX SILVER
International: Major Support at USD26. Bullish above USD28.
Domestic: Sell below 52700, Stop loss 53000, Target 52400.

MCX COPPER
Domestic: Sell below 423.50, Stop loss 425, Target 422.

MCX LEAD
Domestic: Sell below 104.10, Stop loss 104.60, Target 103.60.

MCX ZINC
Domestic: Sell below 103.30, Stop loss 103.70, Target 102.90.

MCX ALUMINIUM
Domestic: Buy above 104.70, Stop loss 104.20, Target 105.20.

MCX NICKEL
Domestic: Sell below 890, Stop loss 897, Target 883.

MCX CRUDE OIL
International: Major Support for WTI at USD83 Bullish above USD 91
Domestic: Buy above 4950, Stop loss 4920, Target 4980. Else Sell below 4920, Stop loss 4950, Target 4890.

MCX NATURAL GAS
Domestic: Buy above 154.50, Stop loss 152.50 Target 156.50. Else Sell below 153, Stop loss 155, Target 151

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