MCX Nickel under short covering; Support seen at 891

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Technically Nickel market is under short covering as market has witnessed drop in open interest by 1.54% to settled at 6779 while prices up 14.2 rupees.

Now MCX Nickel is getting support at 891 and below same could see a of 877.9 level, And resistance is now likely to be seen at 915.6, a move above could see prices testing 927.1.

Nickel on MCX settled up 1.6% at 904.2 on short covering as the US dollar continued to weaken and oil prices climbed. Also support seen a rise in Chinese steel and iron ore prices supported nickel, mainly used to make stainless steel.

prices climbed 1.9% to trade at $13,180 a tonne in official activity. Prices also gained ground on optimism about easy monetary policy ahead of a U.S. central bank meeting and on hopes for further stimulus in top metals consumer .

Base metals joined rising world shares as risk appetite increased, with betting on a dovish statement from the U.S. central bank on Wednesday. London Metal Exchange nickel stocks have declined for 10 days in a row to under 200,000 tonnes, while global exchange inventories of the metal were 47 percent lower year-on-year.

Nickel Corp, the ’ top nickel ore producer, expects its 2019 shipments to be unchanged from last year, although it plans to increase its domestic sales to maximise profits, its chief financial officer told.Top nickel producer Indonesia, though, has been ramping up shipments to China after lifting a ban on metal exports in 2017, with Chinese buyers preferring the higher-grade Indonesian ore.

Preliminary data released by the University of Michigan showed a significant improvement in U.S. consumer sentiment in the month of March. The report said the consumer sentiment index jumped to 97.8 in March from the final February reading of 93.8.

Trading Ideas:
–Nickel trading range for the day is 877.9-927.1.
–Nickel prices rallied on short covering as the US dollar continued to weaken and oil prices climbed.
–Prices also gained on hopes for further stimulus in top metals consumer China.
–Nickel Asia Corp, the Philippines’ top nickel ore producer, expects its 2019 shipments to be unchanged from last year, although it plans to increase its domestic sales.

Courtesy: Kedia Commodities

Source: Commodityonline.com