24.2 C
New York
Wednesday, July 6, 2022

MCX Nickel under short covering; Support seen at 937.2

Mentha Oil market under long liquidation; Support seen at 1496.4

Aluminium market under short covering; Support seen at 140.5

MCX Copper may trade between 418.7-430.1 levels

Natural Gas market under fresh buying; Support seen at 191.5

Crude Oil market under fresh buying; Support seen at 4742

Technically Nickel market is under short covering as market has witnessed drop in open interest by 19.04% to settled at 5549 while prices up 5.6 rupees.

Now MCX Nickel is getting support at 937.2 and below same could see a test of 927.6 levels and resistance is now likely to be seen at 952.2, a move above could see prices testing 957.6.

Nickel on MCX settled up 0.59% at 946.90 recovered from the day’s low as short covering seen after LME nickel climbed before it hovered around $13,850/mt.

As longs added their positions and shorts cut their positions, the SHFE contract initially rose before it met pressure at 113,000 yuan/mt and fell to its daily moving average overnight.

Low inventories and robust demand for stainless steel buoyed nickel prices. Support also seen after fresh production cuts across local steel mills in Changzhou, Jiangsu province will affect daily pig iron output of some 22,800 mt. Local authorities introduced a new round of cuts on Wednesday July 25 to fight severe air pollution. 

This will affect daily rebar output of 19,800 mt, market calculated from the required cut imposed on each plant. There is likely to be upward room in rebar prices in the short run, given firm downstream demand currently. Last night the US dollar index dipped 0.33% overnight and stood at 94.3, ahead of economic data release and central bank monetary policy meetings this week.

Now day ahead key things to monitor today will be China’s official manufacturing PMI for July, eurozone GDP growth in the second quarter, CPI for July, unemployment rate in June, US PCE price index in June, personal spending in June and the Conference Board’s consumer confidence index for July.

Trading Ideas:
–Nickel trading range for the day is 927.6-957.6.
–Nickel gained as low inventories and robust demand for stainless steel buoyed nickel prices.
–On the supply front, the Philippines to ship over 4 million wmt of medium- and high-grade nickel ore every month during the July-September period.
–Global crude steel production rose 5.8 percent in June from a year ago, while output from top producer and consumer China rose 7.5 percent.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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