Barring the dip to ₹183.95 on Monday final week, lead costs have largely remained steady over the previous week. The lead future contract on the Multi Commodity Change (MCX) has been oscillating between ₹184.5 and 186.5. It’s at the moment buying and selling at ₹185.5 per kg.
General, there isn’t any main change within the outlook talked about on this column final week. Resistance is at ₹187, which is continuous to carry properly. We count on the MCX lead contract to stay beneath this resistance as we see much less probability for it to interrupt above it.
Intermediate assist is at ₹184.5. So long as the contract trades beneath ₹187, it’s extremely prone to break beneath ₹184.5 and fall to ₹182-180 in a single to 2 weeks. Thereafter a corrective bounce to ₹183-185 may be seen
The view will flip bullish provided that the MCX lead futures contract breaks above ₹187 decisively. Such a break will open doorways to check ₹193-195 on the upside once more.
Buying and selling technique
Final week we had advised to go brief at ₹185 and ₹186. The common holding worth is now ₹185.5. We advise merchants to carry on to this brief place. Retain the stop-loss at ₹188 and observe the identical technique. Path the stop-loss all the way down to ₹185 as quickly because the contract falls to ₹183.5. Revise the stop-loss additional all the way down to ₹182 when the MCX lead contract declines to ₹181 on the draw back. Exit the brief positions at ₹180.