Zinc Futures Maintain Upward Momentum as September Contract Trades at ₹415 per kg

Zinc futures have maintained a long-term uptrend, regaining momentum after a recent period of sideways movement and moving above key price levels over the past week.

The September contract is currently trading at ₹415 per kg, having surpassed the resistance level at ₹395 last week. Current price action indicates strong upward momentum without signs of weakness among buyers, pointing to a high likelihood of a continued rally.

Market observations suggest the possibility of a minor price moderation toward ₹400 before the September futures embark on another leg of the rally. A fresh uptick, either from the current level of ₹415 or following a dip to ₹400, is projected to lift the contract toward ₹440, with a potential extension to ₹450 if that resistance is breached.

On the downside, if the contract slips below the support level at ₹400, it could extend the downswing into the ₹390 to ₹395 support band, where the 21-day moving average is currently positioned. Market indicators suggest that only a breach of these lower levels would shift the overall outlook to bearish.

Trading parameters for the September zinc futures recommend entering positions on dips toward ₹400, accompanied by a stop-loss at ₹388. As the contract moves upward to ₹425, traders are advised to tighten the stop-loss to ₹415, with profit booking targeted at ₹440.

"Commodity market movements, such as the current trend in zinc futures, highlight the importance of disciplined risk management and strategic entry points for businesses dealing in raw materials. Monitoring key support and resistance levels allows enterprises to better manage input costs and navigate price volatility effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes