8.9 C
New York
Friday, March 24, 2023

MCX Nickel under short covering; Resistance seen at 881.2

Natural Gas market is under fresh selling; Support seen at 182.3

MCX Aluminium under short covering; Support seen at 130.4

MCX Mentha Oil under fresh buying; Resistance seen at 1651.8

Crude Oil market under fresh buying; Support sen at 3786

NCDEX Chana under long liquidation

Technically Nickel market is under short covering as market has witnessed drop in open interest by 3.77% to settled at 5155.

Now MCX Nickel is getting support at 870.3 and below same could see a test of 863.7 level, And resistance is now likely to be seen at 881.2, a move above could see prices testing 885.5.

Nickel on MCX settled up 0.57% at 876.80 on short covering while LME nickel fluctuated to end lower at $12,400/mt on Wednesday. Today pressure can be seen as Iron ore futures in China fell for a second straight session on Wednesday as the market awaited clarity on the magnitude of supply disruption following Vale SA’s dam closures.

Steel prices also fell, with the most-active rebar contract ending lower for a second day, as worries over weak demand in top consumer China persist. The most-traded iron ore on the Dalian Commodity Exchange settled 3.3 per cent lower at 624 yuan ($US92.34) a tonne, after hitting as low as 615 yuan earlier in the session.

The steel-making raw material had hit a record high of 657.5 yuan on Tuesday but ended lower after an eight-session rally. Last night base metals, except for lead, traded higher Aluminium expanded 0.77%, copper gained 0.5%, nickel up by 0.57% & zinc up 0.54% while lead dropped some 0.52%.

The US dollar slightly recovered reversing losses from the previous day, thanks to an increase in a measure of inflation excluding energy prices.

Now a day ahead Economic data slated for release today include China’s trade balance for January, total social financing and M2 money supply, Germany’s and the eurozone’s fourth-quarter gross domestic product (GDP) growth, the US’ January producer price index (PPI), December retail sales and weekly jobless claims. Also US and Chinese negotiators begin two days of trade talks in Beijing today.

Trading Ideas:
–Nickel trading range for the day is 863.7-885.5.
–Nickel gained due to signs of an easing in tensions in the U.S.-China trade conflict, but a lack of firm resolution kept a lid on the tepid gains.
–U.S. President Donald Trump said he could let the deadline for a trade agreement “slide for a little while”.
–While the growth of consumption in China is likely to further slow in 2019, the pace would be still be steady and relatively fast.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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