Zinc Futurge has Bee in Declive during the last month. Monday closed to ₹ 247.17/kg. While there was an attempt at a rally a couple or a week ago, it was not held, and the Bears withdrew the price.
However, the table now shows that Zinc Futures has formed a base to ₹ 246. This is the level against which the contract was recovered in the second week of April and, although the price fell into recent sessions, the contract fixes them to stay above ₹ 246.
Keep in mind that the trend line also coincides with ₹ 246 and there is another support for ₹ 242. Therefore, the price band of ₹ 242-246 can sacrifice good support for zinc futures.
If the contract recovers on the back of this base, it can increase to ₹ 260. A breakup of this can lead to a demonstration to ₹ 266.
On the other hand, if Zinc futures violate the support in ₹ 242, there could be another stage down, which potentially drags the contract to ₹ 230 and ₹ 220.
Commercial strategy
Since the contract looms on a base, the risk-back ratio is in favor of long positions. Therefore, buy zinc futures at the current level of ₹ 246 with a stop -los a ₹ 240. Book Profit to ₹ 260.
Posted on April 22, 2025
About The Author
