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Thursday, July 7, 2022

MCX Nickel may trade between 905.7-940.5 levels

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NCDEX Mustard Seed under short covering

Technically Nickel market is getting support at 912 and below same could see a test of 905.7 levels and resistance is now likely to be seen at 929.4, a move above could see prices testing 940.5.

Nickel on MCX settled down 0.85% at 918.40 tracking weakness from LME Nickel which closed down 1 percent at $13,400 a tonne on mounting concerns escalating trade tariff spats could dent demand, although a weaker dollar cushioned losses.

While sentiments slowly changing after the report that nickel, the top performing industrial metal this year, is expected to recover recent losses in the second half of the year, a Reuters poll showed.

The price of nickel, used in stainless steel and an ingredient in electric vehicle batteries, has gained 7 % this year while the other five main base metals are all down. Supporting nickel prices this year has been a 28 % fall in LME stocks to their lowest in more than four years.

This is 5 % higher than Wednesday’s close and up 9 % from a forecast of USD 13,024 in the previous poll in January. However, it is down 10 % from a peak hit in April. Nickel is also benefiting from political risks in the Philippines.

The president of the Philippines, the world’s No.2 nickel ore supplier after Indonesia, said this month he would soon halt mining because of the environmental damage it has cause while an industry group warned ore exports could drop by up to 17 percent this year.

Investors will also be looking ahead to Friday’s U.S. GDP report to see how the economy performed in the second quarter. The data is expected to show that growth rebounded in the three months to June, boosted by an increase in consumer spending.

Trading Ideas:
–Nickel trading range for the day is 905.7-940.5.
–Nickel prices remained under pressure on worries of weaker demand because of trade tensions and a slowdown in top metals consumer China.
–PBoC injects $74bn into banking system as China’s economy slows
–China launched an anti-dumping probe into stainless steel imports worth $1.3 billion, including from a privately owned Chinese mill with operations offshore.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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