MCX Nickel under fresh selling: Support seen at 880.4


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NCDEX Chana under short covering; Support seen at 4220

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 10.91% to settled at 6769

Now MCX Nickel is getting support at 880.4 and below same could see a test of 869.4 level, And resistance is now likely to be seen at 907.5, a move above could see prices testing 923.6.

Nickel on MCX settled down 2.57% at 891.30 dropped sharply on fresh selling tracking weakness from nickel prices which lost 2.5 per cent to settled at $12,880 as pressure seen on steel prices after the news that China’s daily steel output rose in January and February, as mills in the world’s top producer raised production amid firm steel margins and easier environmental restrictions.

Also industrial output in top metals consumer China fell to a 17-year low in the first two months of 2019. Yesterday base metals complex dropped in yesterday’s session as US dollar snapped a four-session decline after the British pound stalled at lower levels ahead of a vote to extend Britain’s March 29 deadline for exiting the EU.

The UK Parliament voted to postpone the Brexit deadline. PM Theresa May put forward a measure that sought to delay the UK’s exit beyond the current March 29 deadline. Data from China’s NBS said that industrial output slowed more than expected in Jan and Feb, suggesting a slowdown in the Chinese economy.

The value-added industrial output in China rose 5.3% in January-February from the previous year, compared to 5.7% a year ago and economists’ estimates of 5.6%. Thursday’s reading was the slowest growth in 17 years. Now traders are eyeing for today data that the eurozone will release its February CPI, and the US will release its industrial output for February and the University of Michigan consumer sentiment index for March.

Trading Ideas:
–Nickel trading range for the day is 869.4-923.6.
–Nickel prices ended with losses as pressure seen after Sintering capacity resumes as Tangshan lifts red alert on smog.
–Data showed China’s industrial output growth fell to a 17-year low in the first two months of the year.
–China’s nationwide survey-based jobless rate was 5.3 percent in February, up from 4.9 percent at end-December, official data showed.

Courtesy:Kedia Commodities