Zinc prices have a range of legs in the last four weeks. The zinc futures contract in the exchange of multiple products (MCX) has been oscillating between ₹ 243 and ₹ 257 per kg in the last four weeks. Within this, the contract is currently quoted near the slower end of the range A ₹ 245 per kg.
Perspective
An important trend line support is around ₹ 241 that can be tested in the next sessions. If the contract manages to recover from there, then an increase in ₹ 250-255 is possible. But a break below ₹ 241 will cover. It will increase the downward pressure and bring new sellers to the market. Such a break will see that Zinc MCX’s futures contract falls to ₹ 230-228 in the coming weeks. It will also indicate that the broader descending trend is intact.
From a general panorama, the region around ₹ 228 is a very strong support. Since such fall beyond ₹ 228 is less likely. The bearish trend can stop there, and a new rally leg can begin.
Commercial strategy
Since there is a support that is coming and observes for now. It is short at a break below ₹ 241. Keep the stop -los in ₹ 245. Remove the stop-loss to ₹ 239 when the price decreases to ₹ 237. Move the stop-the more to ₹ 236 when the contract touches ₹ 234. It leaves the short positions to ₹ 232.
Posted on May 5, 2025
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