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Thursday, July 7, 2022

MCX Nickel under short covering; Support seen at 906.7

MCX Aluminium under fresh selling; Resistance seen at 149.2

MCX Menthol Oil under long liquidation; Support seen at 1690.8

MCX Cotton may trade between 22610-23010 levels

Short covering seen in MCX Cardamom

NCDEX Jeera under short covering; Resistance seen at 20542

Technically Nickel market is under short covering as market has witnessed drop in open interest by 14.94% to settled at 9453 while prices up 7.9 rupees.

Now MCX Nickel is getting support at 906.7 and below same could see a test of 899.2 level, And resistance is now likely to be seen at 923.5, a move above could see prices testing 932.8.

Nickel on MCX settled up 0.87% at 914.3 finding support from the potential disruption at the Indonesian commodity exchange. The global nickel market deficit narrowed to 7,100 tonnes in August from the previous month’s revised deficit of 16,500 tonnes, the International Nickel Study Group (INSG) said.

During the first eight months of the year the deficit widened to 102,600 tonnes from 60,800 tonnes in the same period of 2017, the data showed. Integrated capacity of nickel pig iron (NPI) and stainless steel would gradually dominate the Chinese market by the end of 2019.

High-grade NPI that is produced by capacities with integrated NPI and stainless steel production, is likely to account for 60-70% of the overall output across China by the end of 2019. The proportion will grow from some 40% as of the end of September 2018.

A supply deficit of 77,300 mt across the global nickel markets in 2018 and expects the gap to narrow in 2019. China’s industrial output grew 5.8 percent in September from a year earlier, missing expectations, while fixed-asset investment growth rose to 5.4 percent in the first nine months, above forecasts, data showed.

Investment growth had been expected to hold at 5.3 percent in the first nine months of the year, matching a record low growth rate in January-August. Private sector fixed-asset investment rose 8.7 percent in January-September, compared with an increase of 8.7 percent in the first eight months, according to official data.

Trading Ideas:
–Nickel trading range for the day is 899.2-932.8.
–Nickel prices gained finding support from the potential disruption at the Indonesian commodity exchange.
–Another negative factor for nickel was a report about rising output of NPI.
–China’s NPI output has climbed to the highest daily rate in over 4 years in Sept at 43,400 tonnes of contained metal.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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