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For intra-day, support for lead is seen at 108.5 while 110.5 is the resistance. Sustaining above 110.5 may drive the prices to 111.2 level. Lead prices rose on short covering and the recovery is likely to continue for..

17 May 2013

MUMBAI (Commodity Online): Lead futures for May delivery on India's Multi Commodity Exchange (MCX) looks positive and the commodity is expected to continue with trend till the break of 108.5 level.

“For intra-day, support for the commodity is seen at 108.5 while 110.5 is the resistance. Sustaining above 110.5 may drive the prices to 111.2 level,” said Melbin Noble, Research Analyst at Commodity Online.

“Lead prices rose on short covering and the recovery is likely to continue for the rest of the day,” he noted.

MCX lead for May delivery was seen trading up by 1.15% at Rs.110.40 per kilogram as of 05.23 PM IST on Friday.

Lead prices have remained under pressure over the past month, with the LME cash contract breaking below $2,000/t for the first time since October 2012 and down nearly 20% from its peak this year.

“Macro risks aside, we believe the fundamental picture offers limited downside risk to lead prices in the near term. Visible global refined stocks have trended lower in Q2 so far, with LME holdings hitting the lowest level since December 2010 and Chinese stocks falling over the past month for the first time since Q2 12. We believe
these reflect a tightening in fundamentals due to the constraint on supply dynamic from lower prices,” stated London based Barclays in its recent market analysis.

MCX Nickel

Nickel futures for May delivery on India's Multi Commodity Exchange (MCX) is trading positive and prices are likely to trade with a positive bias. However some selling pressure is expected at higher levels.

“The commodity has good support at 810 while 828 is the resistance for the day. Traders are advised to take benefit from movements to both sides, as it is expected to trade in the range of 810-828,” noted Melbin Noble.

MCX nickel for May delivery was seen trading up by 0.65% at Rs.820.30 per kg as of 05.24 PM IST on Friday.

LME nickel prices have remained under significant pressure over the past month and at close to $15,000/t are now trading at their lowest level since June 2009.

“Such weakness is entirely justified on a fundamental basis. We now project a 113Kt surplus for 2013, which would be a record following 2012’s previous record surplus of 90Kt,” stated London based Barclays in its recent market analysis.


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