Zinc futures gained nearly 3 per cent in June and it ended the month on Monday at ₹258.35/kg. While the contract made a 12-week high of ₹264 on June 26, it then moderated and is currently trading around ₹256.
Note that ₹256 is a support. Also, the rebound in the second half of June resulted in zinc futures forming a higher base. In addition, the open interest (OI) has risen from 1,778 contracts on June 13 to 3,580 contracts on June 30. A price rise along with an increase in OI denotes fresh long build-up.
So, the above factors give a clear positive indication with respect to the outlook. While there is a resistance at ₹262, a potential rally from the current level can lift zinc futures to ₹266, where it is likely to hit a trendline barrier.
On the other hand, if the contract falls and breaches the support at ₹256 and the subsequent base at ₹252, the downtrend will most likely extend to ₹246 and ₹243.
But as it stands, the bulls have an edge over the bears.
Trade strategy
Buy zinc futures (Jul) now at ₹256 with a stop-loss at ₹252. When the contract rises to ₹262, revise the stop-loss to ₹259. Book profits at ₹266.
Published on July 1, 2025
