Zinc prices experienced an uptick, increasing by 1.86% to close at Rs 325.4, buoyed by a more favorable outlook as investors speculate on a potential reduction in geopolitical tensions in the Middle East. Robust economic indicators from China contributed to the upward momentum, as the manufacturing PMI increased to 50.4, indicating a shift back to expansion and enhancing confidence in industrial demand.

The market is fundamentally supported by tighter inventories and an uptick in industrial activity. Stocks at the Shanghai Futures Exchange experienced a decline of 2.3%, whereas China’s industrial output demonstrated a year-on-year increase of 6.3% in early 2026, indicating a consistent recovery in demand. Concurrently, disruptions on the supply side, such as previous mine closures and delays, have contributed to sustaining prices.

Nonetheless, the potential for growth appears constrained as apprehensions regarding the wider global economic repercussions of the conflict persistently influence sentiment. Looking ahead, the supply outlook is steadily enhancing. The resumption of activities at Boliden’s Tara mine and the acceleration of new projects are anticipated to maintain a modest surplus in the global market, as forecasted by Goldman Sachs, despite the consistent growth in demand.

From a technical perspective, the market is experiencing short covering, as evidenced by a 0.44% decline in open interest, which now stands at 1,806 lots. Immediate support is identified at Rs 320.1, with potential further decline toward Rs 314.7. On the upside, resistance is positioned at Rs 328.5, and a movement beyond this threshold may propel prices toward Rs 331.5.