MCX Aluminium under long liquidation
MCX Mentha Oil under fresh selling; Resistance seen at 1478.9
NCDEX Chana under short covering; Support seen at 4498
MCX Cotton under long liquidation
NCDEX Jeera under long liquidation; Resistance seen at 17962
Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 1.25% to settled at 13974 while prices down 1 rupees.
Now MCX Nickel is getting support at 754.5 and below same could see a test of 750 level, And resistance is now likely to be seen at 764.2, a move above could see prices testing 769.4.
Nickel on MCX settled down 0.13% at 758.9 as concerns that weakening economic growth will curtail demand. Fears that growth in top consumer China is cooling and that a trade dispute with the United States could exacerbate the slowdown.
Despite expanded production cuts in the second half of December, downstream stainless steel plants will increase stockpiles of raw materials as the Chinese New Year holiday approaches. This is expected to stem the decline in nickel prices, and expand premiums of high-grade nickel pig iron (NPI) against refined nickel.
Though port stocks of nickel ore shrank on the week, further downward room is expected in nickel ore prices as most large NPI plants keep sufficient in-plant stocks of raw materials that could meet consumption for more than three months.
Nickel ore inventories at major Chinese ports inched down 1.09% week on week, to stand at 9.06 million mt as of last Friday. The global nickel market deficit widened to 19,600 tonnes in October from the previous month’s revised deficit of 9,000 tonnes, the International Nickel Study Group (INSG) said.
During the first 10 months of the year the deficit widened to 118,700 tonnes from 86,500 tonnes in the same period of 2017, the INSG data showed. Nickel inventories in the Shanghai bonded areas fell 1,000 mt, or 3.4% from a week ago to stand at 28,000 mt as of Friday December 21, data showed.
–Nickel trading range for the day is 750-769.4.
–Nickel dropped as concerns that weakening economic growth will curtail demand
–Despite expanded production cuts in the second half of December, downstream stainless steel plants will increase stockpiles of raw materials.
–Nickel inventories in the Shanghai bonded areas fell 1,000 mt, or 3.4% from a week ago to stand at 28,000 mt, data showed.
Courtesy: Kedia Commodities