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Wednesday, May 25, 2022

MCX Nickel under fresh selling; Support seen at 882.3

MCX Aluminium under fresh selling; Resistance seen at 145.6

MCX Menthol Oil under fresh buying; Support seen at 1787.3

Crude Oil market under short covering; Support seen at 4878

MCX Silver expected to trade in a range between 38318-39158

MCX Cardamom under long liquidation; Resistance seen at 23090

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 3.12% to settled at 14420 while prices down 5.3 rupees.

Now MCX Nickel is getting support at 882.3 and below same could see a test of 877.7 level, And resistance is now likely to be seen at 894.4, a move above could see prices testing 901.9.

Nickel on MCX settled down 0.59% at 886.80 tracking weakness from LME nickel pared losses after touching $US12,080 a tonne, the lowest since December 2017, when Chinese steel prices notched up a fourth straight day of gains. Nickel, mainly used in stainless steel, closed down 0.6 per cent at $US12,155 a tonne.

The three-month nickel price largely under-performed amid slight downticks in aluminium and zinc, while three-month copper, lead prices clocked decent gains. Falling to its lowest price since December 2017, pressure has mounted for the three-month nickel price, largely due to a downtrend in equity markets earlier in the week prompting broad risk-aversion.

While positive third-quarter earnings report from the likes of Tesla, Microsoft and Ford Motors has bolstered market sentiments, the impact of tariffs on China’s economy – which continues to exhibit a marginal slowdown – is keeping investors cautious.

Last night the US dollar strengthened as the euro and pound slipped on Thursday after the ECB kept interest rates unchanged in their October policy meeting. The interest rate on the main refinancing operation, the marginal lending facility, and the deposit facility sit at zero, 0.25% and 0.40% respectively.

Now a day ahead Economic data slated for release today include Germany’s Gfk consumer confidence for November, US GDP, PCE price index and personal consumption for the third quarter as well as the University of Michigan’s consumer sentiment index for October.

Trading Ideas:
–Nickel trading range for the day is 877.7-901.9.
–Nickel dropped amid anticipation of NPI supply increases and downstream consumption cuts and fears of a slowdown in global economic growth.
–The US dollar strengthened after European data signalled that economic growth could be waning across the eurozone.
–The services PMI in the US registered at a seasonally adjusted rate of 54.7 for the month of October, versus 53.5 in the previous month.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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