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Thursday, October 28, 2021

MCX Nickel under fresh buying; Resistance seen at 907.8

Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 4.41% to settled at 5783 while prices up 6.6 rupees.

Now MCX Nickel is getting support at 907.8 and below same could see a test of 897.7 level, And resistance is now likely to be seen at 928.4, a move above could see prices testing 938.9.

Nickel on MCX settled up 0.72% at 917.8 as support seen after on-warrant LME inventories fell to 128,580 tonnes, the lowest since February 2013. Prices also seen supported by weaker dollar and more signs of progress in trade talks between China and the United States.

Growth in China’s home prices eased to a nine-month low in January in a further sign that the slowing economy is weighing on consumer confidence. Weakening price gains point to strains on China’s massive property sector and raise questions over whether more cities will risk loosening restrictions on home buyers.

Average new home prices in 70 major cities rose 0.6 percent in January, the weakest pace since April 2018, according to calculations based on data from the National Bureau of Statistics (NBS).

China’s economy grew at its weakest pace in 28 years last year due to trade frictions and Beijing’s multi-year campaign to crack down on debt risks, weighing on consumer sentiment and the outlook for the country’s residential property market.

The global nickel market was mostly balanced in December compared to a deficit of 5,800 tonnes in November but 2018 showed a wider shortfall of the metal than in the previous year, the International Nickel Study Group (INSG) said.

In December the deficit narrowed to just 700 tonnes from a larger gap in November. But the market widened its annual shortfall to 127,600 tonnes from one of 115,100 in 2017, the data showed.

Trading Ideas:
–Nickel trading range for the day is 897.7-938.9.
–Nickel prices gained as support seen after on-warrant LME inventories fell to 128,580 tonnes, the lowest since February 2013.
–The global nickel market was mostly balanced in December compared to a deficit of 5,800 tonnes in November, INSG data showed.
–Growth in China’s home prices eased to a nine-month low in January in a further sign that the slowing economy is weighing on consumer confidence.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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