Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 4.1% to settled at 2235 while prices down 0.2 rupees.
Now MCX Nickel is getting support at 1368.6 and below same could see a test of 1353 levels, and resistance is now likely to be seen at 1395.2, a move above could see prices testing 1406.2.
Nickel yesterday settled down by 0.01% at 1384.3 as concerns about the timing and pace of the U.S. Federal Reserve’s monetary easing plan kept the dollar near one-year highs.
On the macro front, the U.S. Congressional Budget Office said that the cash and special measures to avoid federal default may be exhausted by the end of October.
The current market expectations of the Fed tapering bond purchases continue to heat up. The manufacturing sector in China fell into contraction territory in September, the latest survey from the National Bureau of Statistics revealed with a manufacturing PMI score of 49.6.
That missed expectations for a reading of 50.1, which would have been unchanged from the August reading. It also moved beneath the boom-or-bust line of 50 that separates expansion from contraction.The bureau also said that its non-manufacturing PMI came in with a score of 53.2, moving up into expansion after posting a score of 47.5 in August.
Small firms caught in China’s prolonged energy crunch are turning to diesel generators, or simply shutting shop, as coal industry officials voiced fears about stockpiles ahead of winter and manufacturing shrank in the world’s no. 2 economy.
–Nickel trading range for the day is 1353-1406.2.
–Nickel prices fell as concerns about the timing and pace of the U.S. Federal Reserve’s monetary easing plan kept the dollar near one-year highs.
–The U.S. Congressional Budget Office said that the cash and special measures to avoid federal default may be exhausted by the end of October.
–China’s manufacturing PMI for September stood at 49.6, which fell again from the previous sessions and was below the market expectation.
Courtesy: Kedia Commodities
Source: Comodity Online