LEAD

MCX Lead futures traded bearish during the December month owing to rising worries about the situation worldwide regarding the second outbreak of the covid-19. This has dampen the demand for Lead in the global markets along with other base metals. However, a series of lockdown in the European Union and certain parts of United States had weakened the industrial demand for Lead even though the LME Inventories were reported to be relatively lower with various developments of vaccine across the globe. By 31st December, MCX Lead prices closed at Rs.153.8/kg, lower by 4.29% compared to closing of Rs. 160.7/kg reported on 30th November. Looking forward for the coming month, we expect MCX Lead futures to trade mixed due weaker Dollar index with another lockdown phase in the United States and European Union. China and other Asian countries usage which had been leading in the previous month, however this year may start of sluggish amid covid-19. Vaccine optimism may support prices from the lower levels. As per International Lead and Zinc study Group (ILZSG), global refined lead production for the month of Oct’20 has reported at 1030.1 thousand metric tonnes(MT), higher by 3.54% compared to previous month's production of 994.9 thousand metric tonnes. On the other hand, metal usage during Oct'20 has been reported at 1038.1 thousand tonnes, higher by 3.55% compared to previous month's usage of 995.2 thousand tonnes. Mining activities in South America is expected to recoveries in the earlier months with easing Covid-19 cases especially in Chile, Peru, Mexico countries, but then, possibilities of new strain virus could disrupt production activities in the month ahead. Moreover, the trade deficit for Sept'20 has been reported which is likely to support Global Lead prices during the coming month from any major downside movement. Hence, we expect mixed trend in MCX Lead futures for the month ahead.

taken support near its 50 Days “Simple Moving Average”, which indicates strength in the counter. Also, the counter has sustained above its “Ichimoku Cloud” which confirms power in the hands of the bulls. But, the price is trading below its “Parabolic SAR” which suggests a downward bias in the counter. Additionally, Super Trend (7,1) indicator is in a sell signal which signals bearishness. Also, momentum indicator RSI (14) has sustained below its 50 level, which indicates bearish dominance in the counter. So, based on the mixed technical structure, we can expect a sideways to bearish movement in MCX Lead (Jan) futures for the month ahead. On the higher end, the price may find the resistance around 160.20 levels, while on the lower end; it may test the support at 152 levels. On the daily chart, MCX Lead has

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