Lead futures’ price has been on a fall since May 2024. It started to decline after facing resistance between ₹194 and ₹196. It closed at ₹177.75 on Tuesday thereby posting a loss of 4 per cent for 2024.

Looking at the chart from a long-term perspective, lead futures has been held between ₹173.50 and ₹196 since June 2021. Therefore, the contract is now nearing the lower boundary of this range.

Since the price region of ₹173.50-176 has been holding well since mid-2021, the likelihood of lead futures slipping below this level is low.

Therefore, the January expiry lead futures, currently hovering around ₹178, will most likely recover after falling to the support band of ₹173.50-176.

In case the base at ₹176 is breached, the medium-term trend can turn bearish. Notable support levels below ₹176 are at ₹165 and ₹156.

But broadly, we expect the lead futures to recover on the back of the demand zone of ₹173.50-176.

Trade strategy

Buy lead futures at ₹176 and place a stop-loss at ₹172. When the contract reaches ₹185 revise the stop-loss to ₹180. Book profits at ₹194.