Zinc on MCX settled up 1.89% at 183.7 as Chinese buying had been supporting the market. China’s inventories in Shanghai, Guangdong and Tianjin decreased. This may give some confidence to investors. China's economy is set to log steady growth and there is no scope for hard landing, Premier Li Keqiang said.
Nonetheless, the economy faces significant external risks, he told reporters after the conclusion of the annual national legislative session. China targets about 6.5 percent economic growth this year, which is slower than the 6.7 percent expansion achieved in 2016.
Trader are eyeing on China as China historically been a major importer of zinc concentrates to top up domestic supply to its smelters. It should in theory be feeling the raw materials pinch, particularly since concentrates imports slumped 49 percent last year and were down again in January to the tune of 7 percent.
The Bank of Japan kept monetary policy steady and maintained a cautiously optimistic view on the economy, signalling that no expansion of monetary stimulus was forthcoming in the near future. In a widely expected move, the BOJ maintained the 0.1 percent interest it charges on a portion of excess reserves that financial institutions park at the central bank.
Technically market is under fresh buying as market has witnessed gain in open interest by 15.34% to settled at 5676 while prices up 3.4 rupees, now Zinc is getting support at 180.7 and below same could see a test of 177.7 level, And resistance is now likely to be seen at 185.4, a move above could see prices testing 187.1.