BL Analysis Bureau
Zinc costs have been unstable in the course of the first two months of this yr and consequently, the continual contract of zinc on the Multi Commodity Alternate (MCX) noticed zig-zag worth motion with no particular pattern. However, in April, the contract established a gentle uptrend which has been pushing the worth of the futures up with intermittent corrections. On this line, the contract, after hitting a excessive of ₹262.85, noticed a decline in worth. Nevertheless, the assist at ₹250 restricted the decline under this degree.
The worth degree of ₹250 is vital because the 21- day transferring common (DMA) coincided at this degree, making the assist stronger. So, the bulls have been fast to reply leading to a substantial bounce. Final week, the contract rallied previous the prior excessive of ₹262.85, opening the door for additional strengthening. At the moment, the contract moved above the ₹270, which has been giving some robust time to the bulls for the previous few buying and selling periods.
From right here, the contract is more likely to go up ₹285 initially. A transparent breach of this degree could make the job simpler for the bulls to raise zinc futures to ₹300-mark. So, merchants can go lengthy at present degree of ₹274 and accumulate extra if it drops to ₹265. Place stop-loss at ₹255 and intention to partially exit at ₹285. Carry the remaining for the goal of ₹300 with the stop-loss revised upwards to ₹275. If the contract rallies previous ₹280 with out declining to ₹265, place stop-loss at ₹265.