Indian Base Metals Commodity Market
Literally, the term commodity can be defined as a product or material. Though sometimes retail equity investors find commodities as an unfathomable market, in reality, commodities are quite easy to understand. The market is full of advantages. In the world, there are near about 50 major commodities market with approximately 100 primary commodities trading options. Here, on our page, you can get the description of three broad commodity sections, bullion, base metal, and energy. This article is going to cover Zinc, a base metal. A live Zinc Price Chart is attached, from there traders can monitor the price fluctuation of the particular metal.
If we start from the very basics, the first question should be what is meant by the term “base metals”. In contrast to bullion metal, the base metal is inexpensive and easily findable. Some of the base metals have been using since the ancient period as the exchange medium. The common base metals like copper, zinc, nickel are widely used in everyday items, especially for industrial as well as commercial purpose.
Commodity Exchange is a legal entity just like Stock Exchange, under SEBI, facilitates and determines the rules-regulations for trading. The commodity market began mainly with the trading of the agricultural product. In India, there are multiple regional as well as national commodity exchanges. Some of the well-known commodity exchanges are MCX (Multi Commodity Exchange), NMCE (National Multi Commodity Exchange of India), National Commodity and Derivative Exchange (NCDEX), ACE (Ace Derivatives and Commodity Exchange), UCX (Universal Commodity Exchange) etc. Among the commodity exchanges, MCX is one of the largest and oldest exchanges in India.
Characteristics of Zinc
Since the ancient times, Zinc has been using as one of the most useful base metal. Though, the metal was discovered by a German chemist in 1746, long before the discovery civilizations were using zinc. At present, more than 11.9 million metric tons of zinc is being extracted and More than 50 countries have zinc mines. The derived process of zinc is primary and secondary. Primary process refers to mining and secondary is recycling. The primary production process includes concentration, melting, refining, alloying. In the world, India is ranked in the 6th position in the mine production of zinc. Here, Zinc price support and resistance and zinc futures daily candlestick chart is attached below:
Zinc Price Support And Resistance
|Moving Averages||100%||-||-||Strong Sell|
|Momentum Oscillators||100%||-||-||Strong Sell|
Zinc Futures Daily Candlestick Chart
The above chart of zinc will update automatically with the price fluctuation. Users only need to update and refresh the page manually often.
Usage of Zinc
- Galvanizing Material
- Zinc oxide
- Zinc sulfide
Zinc in the Commodity Market
Zinc has both organic and inorganic usage. Organically it helps in the proper simulation of the Vitamins in the human body and hence it is widely used in medicines also. In the industry, Zinc is used to manufacture dry cell batteries. As a commodity, it is traded in MCX exchange. In MCX both Zinc and Zinc, Mini is traded widely.
Zinc has a lot size of 5000 (5 MT) and Zinc Mini has a lot size of 1000 (1 MT) in MCX exchange. Zerodha requires a margin of around Rs. 65000 for Zinc in NRML and Rs 33000 in MIS. They require a margin of around Rs. 14000 for Zinc Mini in MIS and Rs. 7000 in NRML.
Intraday traders trade Zinc for a 50 paisa to 1 rupee price movement. They trade using scalping technique with very small targets and smaller stop loss. For every 1 rupee movement in Zinc price traders gain or lose Rs. 5000 and in Zinc Mini, they gain OR lose Rs. 1000. Due to the habit of booking small targets, traders are always advised to used a smaller stop loss to maintain a healthy risk-reward ratio. Like other commodities we advise to keep a 1:2 risk reward ratio, i.e. if you are trading for 1 point target must keep not more than 50 paisa stop loss.