Gold Silver Reports — Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 69.75% to settled at 5393 while prices up 0.95 rupees.  

MCX Zinc is getting support key level at 177 and below same could see a test of 175.6 level, And resistance key level is now likely to be seen at 181, a move above could see prices testing 183.  

Zinc on MCX settled up 0.53% at 179.40 after data showed that growth in China’s manufacturing sector cooled slightly in July, but a government-led infrastructure push kept construction humming.

On-warrant or available LME zinc inventories rose to 155,650 tonnes, up 123 percent over the past 2-1/2 weeks. Growth in China’s manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales.

But even as firms boosted purchasing in anticipation of more business, employment levels at factories fell at the fastest pace in 10 months and a reading on business outlook was the lowest since last August – a sign that economic momentum may start to ebb in the months ahead.

Combined zinc inventories in Shanghai, Tianjin and Guangdong increased 200 tonnes to 122,600 tonnes last week. Inventories in Guangdong were steady, and those in Shanghai declined. Arriving shipments of imported zinc in Shanghai were limited, and downstream buyers purchased as needed.

Besides, some zinc smelters reduced shipments to Shanghai because of price spread between Shanghai and Tianjin. Zinc inventories in Tianjin grew nearly 4,000 tonnes on a weekly basis. Shipments from Zijin Mining arrived. This, combined with more shipments to Tianjin by some smelters and weak downstream buying interest, added to inventories in Tianjin. — Neal Bhai Reports

Zinc MCX Resistance Key at 181 Level | Neal Bhai Reports | Gold Silver Reports