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Sunday, May 29, 2022

MCX Nickel under fresh buying; Resistance seen at 890.3

MCX Gold under fresh buying; Support seen at 32943

MCX Silver under fresh buying; Resistance seen at 40784

MCX Crude Oil under fresh selling; Support seen at 3832

MCX Natural Gas may move in a range of 193.7-212.5

MCX Copper may trade between 433.3-442.1 levels

Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 44.13% to settled at 6352.

Now MCX Nickel is getting support at 877.4 and below same could see a test of 870 level, And resistance is now likely to be seen at 890.3, a move above could see prices testing 895.8.

Nickel on MCX settled up 0.5% at 884.90 gained on fresh buying after the LME price extended its run to the highest level since October. Nickel is up 15.8% so far this year gained tracking prices of the stainless steel material were up 1.0 percent at $12,480 a tonne from an earlier three-month high at $12,515 a tonne.

Its rise has been fuelled by falling LME stocks and worries about disrupted supply from Brazil’s Vale. But the discount for the cash contract against the three-month at nearly $70 a tonne indicates the market is not concerned about nearby supplies.

Meanwhile the Aluminum Corp of China (Chalco) said that it was implementing “flexible production” on about 200,000 mt/year of capacity at its Shandong Huayu facility due to high electricity tariffs, environmental restrictions and the market environment.

Huayu’s capacity cut of 50,000 mt/year in November was included in Chalco’s announcement of 470,000-mt capacity cut on November 30. Prices of electricity and coal are relatively high in Shandong and Huayu is located close to the smog-plagued 2+26 cities that are subjected to rigorous environmental restrictions.

Those factors prompted Chalco to stop production at Huayu. Now a day ahead Economic data slated for release today include China’s Caixin PMI, Germany’s Markit PMI, the eurozone’s Markit PMI and consumer price index as well as the US nonfarm payrolls report, Markit and ISM PMI, the University of Michigan consumer confidence index and weekly rig count. Data are all for January.

Trading Ideas:
–Nickel trading range for the day is 870-895.8.
–Nickel prices gained as support seen due to falling stocks and concerns that Brazil’s Vale could cut some of its production.
–Soaring nickel output in China and Indonesia to record levels this year is expected to weigh on prices.
–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.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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