MCX Nickel under fresh selling; Support seen at 825.6

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Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 5.14% to settled at 10444 while prices down 5.4 rupees.

Now MCX Nickel is getting support at 825.6 and below same could see a of 821.4 level, And resistance is now likely to be seen at 834, a move above could see prices testing 838.2.  

Nickel on MCX settled down 0.65% at 829.8 as heightened trade tensions between and the US continued to grow shorts in the markets and weighed on prices.

The global nickel market deficit widened to 12,500 tonnes in March from a revised shortfall of 1,000 tonnes the previous month, the International Nickel Study Group said. Global miner BHP Group said plans to expand its nickel sulphide operations amid an expected boom in demand for the material in electric vehicle batteries.

In minutes of the 30-May 1 discussion, Fed officials believed the central bank could remain “patient” in deciding when to adjust interest rates, though some thought future rate hikes might still be needed.Fed officials noted that prospects for the US and global economy had been improving, while inflation had fallen farther below the Fed’s 2% target.

Fed President John Williams said at a press briefing on Wednesday that there is not currently a strong argument for changing rates, including as a response to low inflation readings that may due to temporary factors.”We need to make sure that we continue with a strong expansion, the strong economy, in a way that leads to inflation moving back to our symmetric 2% goal,” Williams said in response to a question on whether a rate cut could help support inflation.

Trading Ideas:
–Nickel trading range for the day is 821.4-838.2.
–Nickel dropped as heightened trade tensions between China and the US continued to grow shorts in the markets and weighed on prices.
–The global nickel market deficit widened to 12,500 tonnes in March from a revised shortfall of 1,000 tonnes the previous month, the International Nickel Study Group said.
–Global miner BHP Group said it plans to expand its nickel sulphide operations amid an expected boom in demand for the material in electric vehicle batteries.

Courtesy: Kedia Commodities

Source: Commodityonline.com