Zinc futures, currently trading at ₹309/kg, have been rallying since last week. Early this week, it broke out of a resistance at ₹305. On Thursday, the contract (December expiry) marked a high of ₹310.70.
Given the prevailing price action, the overall trend is bullish. However, note that ₹310 is a potential resistance. While this may not turn the trend bearish, zinc futures might witness a temporary fall in price, possibly to ₹300. The price band of ₹298-300 is a support.
After the potential decline, zinc futures is likely to resume the rally. On the upside, the contract can touch ₹325. A break-out of this can lift the contract to ₹340.
On the other hand, if zinc futures declines and breaches the support at ₹298, it can extend the downswing to ₹280.
Overall, as it stands, we expect zinc futures to see a dip to ₹300 and then a rally to ₹325.
Trade strategy
Go long on zinc futures (December) when the price moderates to ₹300. Target and stop-loss can be ₹325 and ₹295, respectively.
Published on December 4, 2025
