Aluminium market under short covering; Support seen at 146.2
MCX Zinc under fresh selling; Support seen at 172.8
MCX Cotton market under short covering; Support seen at 22736.6
MCX Cardamom under fresh buying; Support Seen at 1438.4
NCDEX Jeera under fresh selling; Resistance seen at 19555
Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 8.22% to settled at 14712 while prices down 7.5 rupees.
Now MCX Nickel is getting support at 880.2 and below same could see a test of 871.7 levels and resistance is now likely to be seen at 896.6, a move above could see prices testing 904.5.
Nickel on MCX settled down 0.84% at 888.7 facing pressure from intensifying trade tensions between the United States and China. The Philippines, one of the world’s top suppliers of nickel ore, will in the week start limiting the land that miners can develop at any one time as new rules to protect the environment take effect.
The new curbs, backed by President Rodrigo Duterte, target 29 of 48 mines operating in the Philippines, which are nickel producers supplying ores to the world’s leading market, China. Reuters first reported the new set of restrictions in April.
Under the new rules, a 20-metre “buffer zone” will be established inward from the mining tenement boundary and near rivers and streams, where metals extraction will be banned. Nickel ore output fell 10 percent in the first half of 2018 from a year earlier to 9.43 million dry metric tonnes, government data showed.
Eleven of the nickel mines had zero output during the period because their operations were suspended or they were under maintenance status.
Manufacturing activity in China, the world’s biggest consumer of industrial metals, grew last month at its slowest rate in more than a year, with export orders shrinking for a fifth month and employers cutting more staff, the Caixin/Markit Manufacturing Purchasing Managers’ Index showed.
Nickel is quite tied up with the stainless steel industry, which has been directly affected by tariffs already, so that might be why it has been particularly hard hit.
–Nickel trading range for the day is 871.7-904.5.
–Nickel dropped facing pressure from intensifying trade tensions between the United States and China.
–Philippines implements fresh nickel mining curbs in environment protection drive.
–Nickel ore output fell 10 percent in the first half of 2018 from a year earlier to 9.43 million dry metric tonnes, government data showed.
Courtesy: Kedia Commodities