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Thursday, July 7, 2022

MCX Nickel under fresh selling; Support seen at 898.8

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

Crude Oil market under long liquidation; Support seen at 4590

Silver market under fresh selling; Support seen at 37820

MCX Aluminium under fresh selling; Resistance seen at 141.8

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 46.66% to settled at 8735 while prices down 49.5 rupees.

Now MCX Nickel is getting support at 898.8 and below same could see a test of 882.4 level, And resistance is now likely to be seen at 945.8, a move above could see prices testing 976.4.

Nickel on MCX settled down 5.13% at 915.20 dropped on fresh selling lost the gains it made in two weeks amid renewed concerns about US-China trade war. Both LME and SHFE base metals fell across the board overnight with LME nickel plunged 4.8% after China’s Caixin manufacturing purchasing managers’ index (PMI) declined to 50.8 in July from June’s 51.0, lower than the expected 51.

A reading above 50 indicates expansion, while a reading below that signals contraction. The country’s economic activity fell to an eight-month low for July as new export orders fell at the steepest pace in more than two years.

Manufacturing output and new business growth slowed in July from June, which drove companies to continue to cut employment. Sentiments remain weak as Factory growth stuttered across the world in July, heightening concerns about the global economic outlook as an intensifying trade conflict between the United States and China sent shudders through trading partners.

Last night the US dollar index inched up to 94.7 overnight after the Federal Reserve concluded a two-day meeting on monetary policy and kept interest rates unchanged. The decision on interest rates was widely expected, but the central bank upgraded its view on the economy, calling it “strong”. Now day ahead key factors to watch today will be US initial jobless claims last week, factory orders and durable goods orders in June.

Trading Ideas:
–Nickel trading range for the day is 882.4-976.4.
–Nickel prices dropped tracking LME prices slid 3.1 percent to close at $13,590 amid a slowdown in Chinese economic growth and a strong US dollar
–Philippines has lifted a two-year moratorium on approving mining exploration permits.
–The Caixin/Markit Manufacturing Purchasing Managers’ Index declined to 50.8 in July from June’s 51.0, matching forecast and a November 2017 level.

Courtesy: Kedia Commodities    

Source: Commodityonline.com

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