Zinc futures have been showing signs of consolidation for nearly two weeks, with the January futures trading within a range of ₹268-276. This follows a period of decline since mid-December, but the long-term chart indicates that ₹270 is a strong support level that has held since September.
If the price breaks above the current range and moves higher, we could see a rally towards ₹293, with further resistances at ₹315 and ₹340. However, if the support at ₹270 is breached and the price falls lower, the short-term trend could turn bearish, potentially leading to a decline to ₹250 and then ₹220.
Based on this analysis, a trade strategy could involve going long on zinc futures at ₹273 with a stop-loss at ₹265. If the contract rises to ₹288, the stop-loss could be revised to ₹282, with profits being booked at ₹293.
Overall, the outlook for zinc futures seems to favor a bullish scenario supported by the strong base at ₹270, but traders should remain vigilant for any potential breaks in either direction that could change the trend.
