Zinc futures lost 2.6 per cent last week and closed at ₹251/kg on Friday. Thus, it slipped below the support at ₹256, opening the door for further fall.
The price has also fallen below the 21-day moving average (DMA), adding to the bearishness. The chart hints at further fall from the current level of ₹251.
The nearest support from the current level can be spotted at ₹246 and ₹243.
That said, in case there is a recovery from the current level, zinc futures will face immediate resistance at ₹252. Subsequent barrier is at ₹256, where the 50-DMA coincides. A breakout of this can lift the contract to ₹261.
For zinc futures to turn the trend bullish, it should surpass the barrier at ₹261. Until then, the bears will be at an advantage over the bulls.
Trade strategy
Short zinc futures at ₹251 and on a rise to ₹254. Place stop-loss at ₹258. When the contract falls to ₹246, revise the stop-loss to ₹250. Book profits at ₹243.
Published on June 2, 2025
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