Zinc futures is currently trading at ₹307 (per kg). The contract opened the current week on the front foot and moved to a high of ₹317.15 on Wednesday. But then the price has now fallen to ₹307.
The contract has a trendline support ahead at ₹304 and the 50-day moving average lies at ₹302. Until these levels hold true, we cannot call the decline in price a shift in trend. That said, one cannot ignore the weakness the contract has started to exhibit.
If the bears gain traction and zinc futures breaches the support at ₹302, it can fall to ₹290. Support below ₹290 is at ₹278.
On the other hand, if the contract rebounds from the ₹302-304 price band, it can rise to ₹316. A rally past this can lift the price to ₹320.
Overall, given the prevailing price action, the direction of the next leg of trend remains uncertain.
Trade strategy
Stay out for now. Traders with high risk appetite can buy zinc futures (January) when to slips to the support at ₹304. Target and stop-loss can be ₹316 and ₹298 respectively.
Published on January 8, 2026
