Zinc futures, which lost 1.3 per cent last week, are marginally up so far this week. They are currently trading at ₹278 (per kg).
The uptrend, which was strengthened by the breakout of the resistance at ₹278 a couple of weeks ago, remains valid despite last week’s price drop.
We expect zinc futures to resume the rally either from the current level or after extending the dip to ₹273. Once the upswing begins, the contract can surpass the prior high of ₹284.40 and touch ₹292.
On the other hand, if the contract falls below the support at ₹273, it can lead to a deeper decline. Notable support levels below ₹273 can be spotted at ₹270 and ₹265.
Overall, the outlook remains positive, and zinc futures are expected to rally soon.
Trade strategy
Last week, we suggested buying zinc futures at an average price of ₹278.50. Retain this trade with stop-loss at ₹272.
When the contract rises to ₹286, raise the stop-loss to ₹282. Tighten the stop-loss further to ₹285 and ₹288 when the contract touches ₹288 and ₹290, respectively. Book profits at ₹292.
Published on September 23, 2025
