MCX Mentha Oil likely to move in a range of 1260.2-1295.4
MCX Aluminium may trade between 139.5-142.5 levels
MCX Zinc likely to move in a range of 183.7-191.7
MCX Copper under short covering: Resistance seen at 458.7
NCDEX Chana under fresh selling; Support seen at 3968
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 10.78% to settled at 11703 while prices down 44.9 rupees.
Now MCX Nickel is getting support at 1215.1 and below same could see a test of 1193.4 levels, and resistance is now likely to be seen at 1264.8, a move above could see prices testing 1292.8.
The premium of LME nickel cash over the three-month contract fell further to a three-week low of $15 a tonne, indicating a supply crunch has eased. Manufacturing activities across nickel downstream sectors barely improved from a month ago in August, remaining in contraction for the fifth consecutive month, showed an SMM survey on Wednesday September 4.
Data showed that the purchasing managers’ index (PMI) for downstream nickel industries grew marginally on the month to stand at 49.19 in August, missing expectations of 49.59. PMI for July climbed 5.43 on the month to 49.18. The preliminary PMI for downstream nickel industries shed 0.6 from August, to 48.59 for September, survey showed.
Last month, the sub-index for production failed to meet the expected 49.13 and stood at 48.85, as a limited pickup in downstream consumption capped increases in stainless steel production even as stainless steel prices moved higher with nickel prices and improved margins at producers.
New orders for batteries from the new energy market improved from a month earlier though they have yet to resume to levels before the subsidy cuts.Elevated raw materials stocks, except for that in the alloy casting sector, pulled up the overall sub-index for raw materials inventories to expansion territory of 50.18% in August, from the previous 49.96%.
–Nickel trading range for the day is 1193.4-1292.8.
–Nickel prices dropped as investors worried about slowing demand growth at China.
–The premium of LME nickel cash over the three-month contract fell further to a three-week low of $15 a tonne, indicating a supply crunch has eased.
–Manufacturing activities across nickel downstream sectors barely improved from a month ago in August, remaining in contraction for the fifth consecutive month.
Courtesy: Kedia Commodities