Zinc futures, currently trading at about ₹295 (per kg), gained 1.6 per cent last week. Notably, early this month, the contract registered a high of ₹300.10 before moderating.
That said, the broader trend remains bullish and the recent bounce occurred on the back of the support at ₹290, where the 21-day moving average coincides.
Overall, the chart indicates that zinc futures have resumed the uptrend after witnessing a temporary blip. From the current level, the contract can surpass the prior peak at ₹300.10 and rise to ₹315.
On the other hand, if zinc futures decline from the current level and slips below the support at ₹290, the downswing can extend to ₹278-280 price band, which is a potential support. A breach of ₹278 will turn the outlook bearish for the contract.
Nevertheless, at the current juncture, the likelihood of a rally is high.
Trade strategy
Retain the buy on zinc futures we suggested at ₹290 a couple of weeks ago. Retain the stop-loss at ₹275. When the contract surpasses ₹300, trail the stop-loss to ₹288. On a rally to ₹308, trail the stop-loss to ₹298. Book profits at ₹315.
Published on October 22, 2025