Zinc futures (₹393/kg) have been rallying since the final week of June after finding support at ₹350. As it stands, although the uptrend is valid, bulls are likely to face a challenge, which might lead to a minor price correction.The August futures broke out of the barrier at ₹380 last week and has been steadily moving up. Currently trading at ₹393, there are no signs of a reversal or weakness in price action. However, there is a trendline resistance at ₹395, which can trigger a corrective decline if not a bearish trend reversal. The price could dip to ₹382-384 range before it rises again.In case the contract extends the decline beyond ₹382 and breaches the subsequent support at ₹380, the near-term outlook can turn weak.However, given the current strength in uptrend, a break below the support at ₹380 is unlikely. We expect zinc futures to drop to ₹382-384 from the current level of ₹393 and then see another leg of rally to ₹400. Trade strategyLast week, we had suggested buying the August futures at ₹379 with a stop-loss at ₹366. Since there is a resistance ahead and that there is a chance for a decline, book profits at the current level of ₹393. Fresh longs can be initiated once the contract steadies after a decline. Published on August 6, 2026