15.6 C
New York
Tuesday, May 24, 2022

Nickel market under long liquidation; Support seen at 939.8

Aluminium market under fresh buying; Support seen at 141.6

MCX Cotton under fresh buying; Support seen at 23334

MCX Cardamom under fresh buying; Resistance seen at 1363.5

Zinc market under fresh selling; Support seen at 166.2

Copper market under short covering; Support seen at 408.8

Technically Nickel market is under long liquidation and getting support at 939.8 and below same could see a test of 933.2 levels and resistance is now likely to be seen at 954, a move above could see prices testing 961.6.

Nickel on MCX settled down -0.01% at 946.50 recovered from the day’s low as the dollar slipped and the market awaited crunch U.S.-China trade talks in Washington. The dollar weakened, LME nickel climbed past $13,700/mt and closed at $13,615/mt on Monday.

As longs added their positions, the SHFE Nickel contract hit a high of 112,830 yuan/mt before it edged down and closed at 112,180 yuan/mt overnight. Shrinking inventories and upbeat fundamentals front also buoyed nickel prices.

Support can be seen this week, as six environmental inspection teams would settle across cities in Jiangsu province for about 10 days, the provincial environmental protection bureau said on Monday. Inspection teams will check rectification works for issues identified during the central government’s environmental reviews in June.

Last night the US dollar index fell below 96 to the lowest in almost one week at 95.76 on Monday after US President Donald Trump scorned the Federal Reserve’s decision to raise interest rates. Trump told Reuters he was “not thrilled” with Fed Chair Jerome Powell for the bumps to the federal funds rate.

He said he would criticise the Fed if it continues to elevate the cost of borrowing. Data from Euro zone revealed that the German producer price index (PPI) grew 0.2% from a month ago in July, in line with the expectations but slower than the 0.3% in June, while the annualised number remained unchanged at 3%. Now day ahead key thing to watch this week would be the upcoming US-China trade talks.   

Trading Ideas:
–Nickel trading range for the day is 933.2-961.6.
–Nickel traded in range as planned trade talks between China and the United States rekindled appetite for riskier assets and weakened the dollar.
–China and Washington would hold lower level trade talks on Aug. 21 and 22, just before $16 billion in new U.S. tariffs on Chinese goods take effect.
–Inventories decreased by 130,000 wmt from a week ago to 11.39 million wmt as of now.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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