MCX Nickel likely to move in a range of 956.9-1028.5

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141

MCX Mentha under fresh selling; Support seen at 1239.9

MCX Aluminium may trade between 139.9-142.7 levels

MCX Zinc under short covering; Resistance seen at 196

NCDEX Chana under long liquidation; Resistance seen at 4325

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MCX Copper under fresh buying; Support seen at 442.2

Technically MCX Nickel is getting support at 978.4 and below same could see a test of 956.9 levels, and resistance is now likely to be seen at 1014.2, a move above could see prices testing 1028.5.

Nickel on MCX settled up 1.36% at 999.8 as US- trade talks are set to resume in Shanghai, as the world’s two largest economies seek to end a protracted trade dispute.

China’s economy continued to weaken in July, bolstering the case for greater policy support to shore up growth as talks over the trade dispute with the U.S continue. Market sentiment improved after the US announced that it would waive tariffs on 110 Chinese exports to the US. US and China negotiators will resume trade talks this week.

The US reported that the gross domestic product (GDP) for the world’s biggest economy grew at an annualised 2.1% in the second quarter, slowing from an unrevised 3.1% in the first quarter. Consumer and government spending fuelled GDP in the April-to-June period, while a pullback in business investment took a toll. Personal consumption expenditures rose 4.3%, the best performance since Q4 2017.

Government consumption expenditures and gross investment rose 5%, the fastest since Q2 2009. The core personal consumption expenditures price index, an inflation gauge preferred by the that excludes the volatile food and energy prices, increased by 1.8%, continuing to undershoot the Fed’s 2% inflation target.

In China, profits earned by industrial firms contracted in June after a brief gain the previous month, according to data released by the National Bureau of Statistics (NBS). Industrial profits fell 3.1% in June from a year earlier to 601.9 billion yuan, following a 1.1% gain in May.

Trading Ideas:
–Nickel trading range for the day is 956.9-1028.5.
–Nickel prices gained as US-China trade talks are set to resume in Shanghai, as the world’s two largest economies seek to end a protracted trade dispute.
–China’s economy continued to weaken in July, bolstering the case for greater policy support to shore up growth.
–In China, profits earned by industrial firms contracted in June after a brief gain the previous month, according to data by the National Bureau of Statistics.

Courtesy: Kedia Commodities

Source: Commodityonline.com