3.9 C
New York
Friday, March 31, 2023

Nickel market under short covering; Support seen at 918

Mentha Oil market under long liquidation; Resistance seen at 1537.5

Aluminium market under fresh buying; Support seen at 138.3

MCX Zinc likely to trade between 169.1-187.5 levels

MCX Copper likely to trade in a range between 411.6-426

Natural Gas market under fresh selling; Support seen at 186.3

Technically Nickel market is under short covering as market has witnessed drop in open interest by 7.73% to settled at 7223.

Now Nickel is getting support at 918 and below same could see a test of 902 levels and resistance is now likely to be seen at 942.6, a move above could see prices testing 951.2.

Nickel on MCX settled up 1.12% at 933.90 as support seen from LME nickel prices which rebounded from a low of $13,305/mt and climbed to close at $13,665/mt, with inventory dipping 882 mt to 262,416 mt. While the trade war threat depressed market sentiment in general, nickel prices see limited downward room with buoyance from tight supply.

Prices of steel-linked metals nickel and zinc came under pressure on lower demand expectations after China’s top steelmaking city, Tangshan, ordered steel mills to shut sintering plants for five days on Friday due to forecasts of heavy smog over the weekend.

Pressure seen earlier after China’s second-quarter growth slowed as expected, with the focus expected to shift to China’s response to the latest U.S. tariffs plan. China’s economic growth slowed in the second quarter as the government’s efforts to tackle debt risks crimp activity and an intensifying trade war with the United States threatens to knock exports.

Last night the US dollar index inched down from a three-week high but still stood above the 95 level and closed at 95.09. Base metals mostly consolidated at low levels. LME copper and lead touched their one-year lows, and lead closed slightly lower. However, zinc jumped nearly 4.5%, the biggest one-day gain over a year, due to declining inventory and tight supply. Other base metals edged up.

From data point the US housing starts tumbled 12.3% to a seasonally adjusted annual rate of 1.17 million units in June, the lowest level since September 2017.

Trading Ideas:
–Nickel trading range for the day is 902-951.2.
–Nickel ended with gains on short covering amid tight supply despite the trade war threat depressed market sentiment.
–Vale Indonesia Q2 nickel in matte output down 6 pct y/y.
–The Philippines’ nickel ore exports could drop by up to 17 percent this year as weaker prices curb output.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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