Zinc futures hit a fresh two-year high of ₹324.40 (per kg) towards the end of last week. But then it moderated and is now hovering around ₹300.
The recent decline has not changed the bullish structure on the chart, and it is likely to be only a corrective fall. The support at ₹300 is likely to arrest further decline. A trendline and the 50-day moving average coincide at ₹300, making it a strong base.
A rally on the back of the support at ₹300 can lift zinc futures to ₹325. A breakout of this can take it to ₹350.
On the other hand, the contract breaches the support at ₹300, it can open the door for a decline to ₹290, a support. Only a break below this level can turn the near-term outlook weak. Immediate support below ₹290 is at ₹278.
But overall, on the back of the support at ₹300, we expect zinc futures to witness a rally to ₹325 over the forthcoming sessions.
Trade strategy
Go long on zinc futures (December) now at ₹300. Target and stop-loss can be ₹325 and ₹295 respectively.
Published on December 18, 2025
