Now MCX Nickel is getting support at 877.9 and below same could see a test of 869.6 level, And resistance is now likely to be seen at 897.7, a move above could see prices testing 909.2.
Nickel on MCX settled down 1.06% at 886.20 tracking weakness from LME nickel prices which gave up earlier gains, slipping 0.1% to $12,555 a tonne in official activity. Its relative outperformance was helped by news that Chinese iron ore futures rose to a record on Monday.
Nickel is mainly used to make stainless steel. China iron ore futures rose to a record on Monday, the first session after a week-long national holiday, on concerns that supply from Brazil, the country’s second-largest ore supplier, may decline after a fatal dam accident at a Vale mine.
Last night base metals traded lower Zinc and lead dropped more than 2%, copper fell 0.77%, nickel slipped 1.06% and aluminium closed flat down by -0.22 as the US dollar index rose above 97 on Monday as an economic slowdown in Europe, weak emerging markets and the strong US job market drove investors to the safe-haven currency.
China’s foreign exchange reserves rose to $3.0879 trillion at the end of January, data showed Monday. The amount increased by $15.2 billion, or 0.5%, from the level by the end of December 2018, according to data of the SAFE.
A day ahead Economic data slated for release today include US December JOLTS. On the central bank front, Fed Chairman Jerome Powell, Fed governor Michelle Bowman, BoE Governor Mark Carney and Bundesbank President Jens Weidmann will deliver speeches.
–Nickel trading range for the day is 869.6-909.2.
–Nickel dropped on profit booking after prices gained on concerns that supply from Brazil, may decline after a fatal dam accident at a Vale mine.
–Germany’s trade surplus widened in December, official data showed February 8, as an increase in exports exceeded the growth in imports.
–Investors will get an update on U.S. inflation figures after the Federal Reserve said it will be patient as it considers whether to continue hiking interest rates.
Courtesy: Kedia Commodities