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Tuesday, May 24, 2022

MCX Nickel likely to move in a range of 850.4-871.4

MCX Aluminium expected to trade between 142.1-145.5 levels

MCX Menthol Oil under fresh buying; Support seen at 1787.8

Long liquidation seen in MCX Cotton

MCX Cardamom under long liquidation

NCDEX Jeera likely to move in a range of 19550-20630

Technically MCX Nickel is getting support at 855.1 and below same could see a test of 850.4 level, And resistance is now likely to be seen at 865.6, a move above could see prices testing 871.4.

Nickel on MCX settled up 0.34% at 859.80 recovered from the day’s low on short covering tracking LME nickel which was unchanged at $11,755 a tonne, hovering above a 10-month low of $11,700 hit on Monday as Evidence of long liquidation and (computer-driven) systematic selling noted.

While sentiments remain weak as Indonesian nickel mine production jumped by 74 percent last year to 345,000 tonnes and increased by another 65 percent in the first seven months of this year, according to the International Nickel Study Group.

Last night the US dollar index rose to the highest thus far this year on Tuesday, amid growing signs the US economy is outperforming its peers. Most LME and SHFE base metals ended in negative territory overnight with LME zinc being the biggest loser, down some 2.5% on the day.

LME copper dropped 1.66%, lead fell close to 0.9%, aluminium slid some 0.7% and tin dipped 0.05% while nickel inched up 0.21%. Meanwhile the China Securities Regulatory Commission on Tuesday said that it would improve market liquidity and encourage more long-term capital into the market.

The securities regulator also said it will encourage share buybacks and mergers and acquisitions by listed firms, reduce unnecessary interference in trading, and create a level playing ground for investors.

Mainland Chinese stocks rebounded following such supportive comments. Now a day ahead Economic data slated for release today also include Germany’s September retail sales, the eurozone’s September unemployment rate and October consumer inflation, the US ADP employment numbers and Chicago PMI for October as well as EIA weekly crude inventory data.

Trading Ideas:
–Nickel trading range for the day is 850.4-871.4.
–Nickel prices traded in range as the US dollar index amid growing signs the US economy is outperforming its peers.
–Profit growth at Chinese industrial companies slowed for the fifth consecutive month in September as sales of raw materials and manufactured goods ebbed further.
–Growth in China’s factory sector is likely to have cooled further in October as domestic demand faltered.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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