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Saturday, November 27, 2021

MCX Nickel likely to move in a range of 950.4-982.4 levels

Natural Gas market under fresh selling; Support seen at 193.2

MCX Zinc under fresh selling; Support seen at 183.3

MCX Aluminium likely to move in a range of 141.2-148.2

MCX Mentha Oil under short covering; Support seen at 1411.6

Short covering seen in MCX Cotton

Technically Nickel market is getting support at 957.3 and below same could see a test of 950.4 level, And resistance is now likely to be seen at 973.3, a move above could see prices testing 982.4.

Nickel on MCX settled up 0.56% at 964.30 rallied on Monday on fresh buying alongside equities as worries about economic growth receded, but an escalating trade dispute between the United States and China is expected to cap prices.

A lower U.S. currency helped to support industrial metals as this makes dollar-denominated commodities cheaper for holders of other currencies. This relationship is used by funds to generate buy and sell signals from numerical models.

Nickel is still up by 62% compared to its June 2017 lows, mostly on the back of falling inventories in top consumer China. On the Shanghai Futures Exchange nickel stocks have dropped for 24 straight weeks while LME warehouses are the emptiest since mid-2014.

And recent weakness has not altered a bullish longer term outlook for nickel with industry research house Wood Mackenzie adding its voice to the plus-column in a note out on Monday. While stainless steel production  – currently nearly 80% of total demand for nickel – is expected to stay solid over the coming years, booming demand from the electric vehicle battery market is set to fundamentally alter the structure of the industry.

Last night the US dollar index fell below 94 on weaker-than-expected salary data, but closed slightly up from the previous trading day, given a declining euro on political turmoil in London overnight. Now ahead of Key factors to watch today include China’s consumer price index (CPI) and producer price index (PPI) in June, as well as the ZWE economic sentiment index for eurozone and Germany in July.

Trading Ideas:
–Nickel trading range for the day is 950.4-982.4.
–Nickel gained on falling inventories and potential stimulus plans, with focus shifting back to market fundamentals and away from the festering Sino-U.S. trade war.
–Trade tensions between the US and China, the European Union, and Mexico may cause an impact on the trade prospects for the rest of the year.
–Investor concerns eased over excessive supplies as demand for steel products is typically weak during China’s summer.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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