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Thursday, July 7, 2022

MCX Nickel likely to move in a range of 1538.7-1602.1

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by -8.79% to settled at 1400 while prices down 13.1 rupees.

Now MCX Nickel is getting support at 1551.9 and below same could see a test of 1538.7 levels, and resistance is now likely to be seen at 1583.6, a move above could see prices testing 1602.1.

Nickel yesterday settled down by 0.83% at 1565.2 as the global nickel market deficit fell to 15,500 tonnes in August from a shortfall a month earlier of 25,700 tonnes, data from the International Nickel Study Group (INSG) showed.

During the first eight months of the year, the nickel market saw a deficit of 172,200 tonnes compared with a surplus of 87,200 tonnes in the same period last year, the Lisbon-based INSG added.

The premium of LME cash nickel over the three-month contract shot up to $189 a tonne, a level unseen since October 2019, indicating tightness of nearby supplies, following Eramet’s report of a drop in ferronickel output in New Caledonia due to a wave of COVID-19 infections there.

Nickel price has been hovering at the $20,000 level supported by lower supply and recovering demand as economies reopen as Covid-19 restrictions lifted. Nickel pig iron market in China continues to be very tight due to power rationing and some supply concerns from Indonesia and the Philippines.

Guizhou province in China has asked some smelters to shut down temporarily due to power shortages. For nickel in China continues to be very tight due to power rationing and some supply concerns from Indonesia and the Philippines.

Trading Ideas:
–Nickel trading range for the day is 1538.7-1602.1.
–Nickel prices dropped as global nickel market deficit shrinks in August to 15,500 T.
–The premium of LME cash nickel over the three-month contract shot up to $189 a tonne, indicating tightness of nearby supplies.
–Nickel pig iron market in China continues to be very tight due to power rationing and some supply concerns from Indonesia and the Philippines.

Courtesy: Kedia Commodities

Source: Comodity Online

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