-0.9 C
New York
Thursday, December 9, 2021

MCX Nickel likely to move in a range of 1409.6-1448

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 26.54% to settled at 1540 while prices down 25.8 rupees.

Now MCX Nickel is getting support at 1417.8 and below same could see a test of 1409.6 levels, and resistance is now likely to be seen at 1437, a move above could see prices testing 1448.

Nickel yesterday settled down by 1.78% at 1425.9 on profit booking as widening power shortages in China raised expectations of output curbs on stainless steel mills.

The nickel prices fell due to concerns over falling demand of nickel from the stainless steel sector which has been required to cut the output. At the same time, demand from the Chinese property sector, is seen falling due to the unsolved Evergrande debt crisis.

Nickel inventories in ShFE warehouses fell to a record low of 4,455 tonnes in August while stockpiles in LME warehouses declined over 30% since mid-April. Meanwhile, demand from the new energy sector was also negatively influenced as the production of nickel sulphate and precursor has been affected by power rationing.

On the macro front, Fed Chair Powell expressed that the employment market was still ideal and the goods prices have been on the rise due to supply difficulties, sending out dovish signals.

The global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes, data from the International Nickel Study Group (INSG) showed.During the first seven months of the year, the nickel market saw a deficit of 158,900 tonnes compared with a surplus of 80,500 tonnes in the same period last year, the Lisbon-based INSG added.

Trading Ideas:
–Nickel trading range for the day is 1409.6-1448.
–Nickel dropped on profit booking as widening power shortages in China raised expectations of output curbs on stainless steel mills.
–At the same time, demand from the Chinese property sector, is seen falling due to the unsolved Evergrande debt crisis.
–Nickel inventories in ShFE warehouses fell to a record low of 4,455 tonnes in August while stockpiles in LME warehouses declined over 30% since mid-April.

Courtesy: Kedia Commodities

Source: Comodity Online

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

10,934FansLike
12,893FollowersFollow
753FollowersFollow
- Advertisement -

Latest Articles

Popular Articles