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Thursday, February 22, 2024

MCX Nickel likely to move in a range of 1502.3-1551.5

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 7.75% to settled at 1626 while prices down 18.1 rupees.

Now MCX Nickel is getting support at 1512.8 and below same could see a test of 1502.3 levels, and resistance is now likely to be seen at 1537.4, a move above could see prices testing 1551.5.

Nickel yesterday settled down by 1.17% at 1523.2 as the global nickel market saw a small surplus of 5,000 tonnes in October compared with a shortfall of 3,100 tonnes a month earlier, data from the International Nickel Study Group (INSG) showed.

During the first 10 months of the year, there was a deficit in the nickel market of 165,500 tonnes compared with a surplus of 88,500 tonnes in the same period last year, Lisbon-based INSG added.

The market risk exposure reduced as the PBoC cut the RRR, coupled with the to-be-held Fed meeting. On the fundamentals, the nickel demand from the stainless steel and new energy sectors was still muted, resulting in thin market transactions.

The market of NPI and nickel sulphate was also quiet.Currently, the low pure nickel inventory may offer some support, which, however, is unable to support nickel prices strongly in the short term.

China will step up support for small businesses, unveiling new financial incentives for local banks to lend to those companies, according to a State Council meeting chaired by Premier Li Keqiang.

Since early last year, Chinese authorities have introduced a raft of measures to support small businesses, which are vital for growth and jobs but have been hit harder by the COVID-19 pandemic.

Trading Ideas:
–Nickel trading range for the day is 1502.3-1551.5.
–Nickel prices dropped as the global nickel market saw a small surplus of 5,000 tonnes in October.
–During the first 10 months of the year, there was a deficit in the nickel market of 165,500 tonnes compared with a surplus of 88,500 tonnes.
–The market risk exposure reduced as the PBoC cut the RRR, coupled with the to-be-held Fed meeting.

Courtesy: Kedia Commodities

Source: Comodity Online

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