Now MCX Nickel is getting support at 915.6 and below same could see a test of 910.6 level, And resistance is now likely to be seen at 927.7, a move above could see prices testing 934.8.
Nickel on MCX settled down 0.22% at 920.60 traded in the range while sentiments remain firm tracking LME nickel added 0.5 per cent to close at $US12,985 a tonne after touching $US13,350 on Wednesday, its highest since August 31, partly on worries about top producer Vale after last month’s collapse of a tailings dam controlled by the Brazilian mining company.
This price action seems unjustified with the majority of Vale’s nickel supply outside of Brazil and none of their six nickel mines utilising the upstream tailings method. Weighing on the complex was a firmer dollar index , making US dollar-denominated metals more expensive for holders of other currencies.
Mixed view was prevailed in the market as Industrial output in Europe’s biggest economy, Germany, registered an unexpected fourth consecutive monthly decline in December, data showed on Thursday, while the Bank of England said Britain faces its weakest economic growth in a decade.
While US President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal. Also the remarks confirmed comments from administration officials who said the two men were unlikely to meet before the deadline, dampening hopes of a quick trade pact and sparking a drop in U.S stock markets.
–Nickel trading range for the day is 910.6-934.8.
–Nickel dropped amid steady drum beat of weak economic data in recent weeks, has stoked fears of a global recession.
–Total inventories of nickel in warehouses registered with the LME stood at 200,754 tonnes, down about 45 percent since the beginning of 2018.
–Senior U.S. and Chinese officials are poised to start another round of trade talks in Beijing next week to push for a deal to avert a March 2 increase in U.S. tariffs on Chinese goods.
Courtesy: Kedia Commodities