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Tuesday, May 24, 2022

MCX Nickel likely to move in a range of 858.6-891.2

MCX Aluminium under long liquidation

MCX Mentha Oil under fresh buying; Resistance seen at 1596.8

NCDEX Chana under fresh selling; Support seen at 4162

MCX Cotton likely to move in a range of 20800-21160

NCDEX Jeera may trade between 15645-16235 levels

Technically MCX Nickel market is getting support at 867 and below same could see a test of 858.6 level, And resistance is now likely to be seen at 883.3, a move above could see prices testing 891.2.

Nickel on MCX settled up 1.41% at 875.40 gained in the line of expectation tracking firmness from Nickel’s three-month price on the LME which continued its strong performance moving past $12,300 per tonne for the first time since October 2018 amid a continued drawdown in LME supply.

The metal’s three-month price is up more than 15% from its 2018 low of $10,500 per tonne on December 31, while total LME inventory remains at its lowest level since 2014 at just over 200,000 tonnes.

Elsewhere, positive risk-appetite has spurred further buying in the metal’s space, with the entire complex trading in positive territory over the morning. Scheduled trade talks between the United States and China could be one reason for this.

Meanwhile at 202,032 tonnes inventories of nickel in LME-registered warehouses are down from around 370,000 tonnes at the start of 2018 and near the lowest since 2013. Spread suggesting that availability of nearby metal is tightening, the discount of cash nickel compared to the three month contract has shrunk from around $95 a tonne in July to around $60.

Also one entity holds between 50 and 79 percent of LME nickel warrants, increasing concerns over short supplies.

Still trader are eyeing on the United States and China launch a critical round of trade talks on Wednesday amid deep differences that will make it difficult to reach a deal before a March 2 U.S. tariff hike. Russia’s Norilsk Nickel said on Wednesday its output of nickel from Russian raw material would increase in 2019 to 220,000-225,000 tonnes from 216,856 tonnes in 2018.

Trading Ideas:
–Nickel trading range for the day is 858.6-891.2.
–Nickel prices rose as investors worried that Brazilian miner Vale, could curtail supply in an already tight market.
–China’s output of nickel pig iron, is expected to rise by about 5 percent this year to 500,000 tonnes due to capacity launches.
–December nickel pig iron production stood at 42,500 tonnes, up 11.5 percent year-on-year and up 0.28 percent from November.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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