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Wednesday, July 6, 2022

MCX Nickel likely to move in a range of 892.8-927.6

MCX Aluminium likely to move in a range of 130.5-132.9

MCX Mentha Oil likely to trade in a range of 1623-1682

NCDEX Chana under long liquidation; Support seen at 4231

MCX Cotton under long liquidation

NCDEX Jeera under long liquidation

Technically MCX Nickel is getting support at 903.6 and below same could see a test of 892.8 level, And resistance is now likely to be seen at 921, a move above could see prices testing 927.6.

Nickel on MCX settled up 1.77% at 914.50 gained on fresh buying tracking firmness from LME nickel prices which rose nearly 1.8 per cent to settled at $12,905  ahead of seasonally strong demand in top consumer China  while raising hopes of an end to the U.S.-China trade dispute also lent support. Demand in China typically picks up in the second quarter ahead of the third quarter when construction activity rises.

Yesterday the U.S. Federal Reserve, in the minutes of its latest meeting in January, said the U.S. economy and its labour market remained strong, prompting some expectations of at least one more interest rate hike this year.

The dollar index edged up 0.1 per cent to 96.579. In Base metals, last night base metals traded higher across the board. Nickel increased by 1.77%, copper climbed 1.22%, zinc gained by 1.20% while lead and aluminium advanced 0.92%.

The US dollar index rose on Wednesday as the Fed’s latest policy meeting appeared more hawkish than the market had expected. The Federal Reserve said the US economy and its labour market remained strong, growing some expectations of at least one more interest rate hike this year. The Fed also emphasised the need for patience over monetary policy.

Now a day ahead economic data slated for release today include Germany’s CPI for January, US durable goods orders for December, existing home sales for January as well as weekly unemployment claims and the EIA weekly crude stocks report. Markit February manufacturing purchasing managers’ indexes (PMI) for Germany, the Eurozone and the US are also due today.

Trading Ideas:
–Nickel trading range for the day is 892.8-927.6.
–Nickel gained after U.S-China trade talks resumed while investors awaited minutes from the U.S. Federal Reserve for clues on policymakers’ thinking on interest rates.
–U.S. President Donald Trump said that trade talks with China were going well and suggested he was open to pushing off the deadline to complete negotiations.
–Better-than-expected Chinese lending data meanwhile suggested that demand from the world’s biggest consumer of metals will remain strong.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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