Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 11.31% to settled at 1168 while prices down 22.4 rupees.
Now MCX Nickel is getting support at 1504 and below same could see a test of 1494.7 levels, and resistance is now likely to be seen at 1526.7, a move above could see prices testing 1540.1.
Nickel yesterday settled down by 1.46% at 1513.4 as data showed that the real estate market in China has been gloomy evidenced by the new housing starts readings.
China’s industrial output grew 3.5% in October from the same period a year ago, accelerating from a 3.1% increase in September while retail sales growth picked up, official data showed. Retail sales in October rose 4.9% compared to the same period last year.
Fixed asset investment rose 6.1% in the first 10 months from the same period a year earlier, compared with the 6.2% increase tipped by a poll and the 7.3% rise in January-September.Momentum is faltering in the world’s second-largest economy with gross domestic product growth hitting its slowest pace in a year in the third quarter.
Domestic refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month.The average operating rate stood at 66%. The actual output in October did not decrease, and the output of major refineries in Gansu was relatively stable.
The output of refined nickel is expected to stand at around 14,500 mt in November. Domestic refineries’ production activities are relatively stable at the moment. The national nickel pig iron (NPI) output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content.Â
Trading Ideas:
–Nickel trading range for the day is 1494.7-1540.1.
–Nickel dropped as data showed that the real estate market in China has been gloomy evidenced by the new housing starts readings.
–China Oct industrial output rises 3.5% y/y.
–China’s retail sales in October rose 4.9% compared to the same period last year.
Courtesy: Kedia Commodities
Source: Comodity Online
