The price of zinc futures has largely been range-bound over the past month. Last week, it rebounded off a support and closed at ₹251/kg on Friday.

But as it stands, the price band of ₹244-256, within which it has been oscillating over the past month, remains valid. Ideally, zinc futures ought to move out of this price band for us to have some certainty about the next leg of trend.

That said, looking from a broader perspective, the price region between ₹242 and ₹244 has been offering support since April last year. Therefore, the likelihood of the tide shifting in favour of the bulls appears high.

Although there is a resistance ahead at ₹256, we expect zinc futures to rally past this level and move up towards ₹270 in the short term.

The bullish inclination will be negated if the contract slips below the support at ₹242. In that event, zinc futures can experience another leg of downtrend which can drag the price to ₹230.