MCX Zinc likely to trade between 176.5-182.9 levels
Copper market under fresh selling; Support seen at 422.6
MCX Natural Gas expected to trade in a range between 189.7-194.3
MCX Cotton under long liquidation
NCDEX Cardamom may trade between 1141.4-1155.4 levels
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 7.08% to settled at 6854.
Now MCX Nickel is getting support at 937.1 and below same could see a test of 933 levels and resistance is now likely to be seen at 946.8, a move above could see prices testing 952.4.
Nickel settled flat given low inventories across LME and domestic warehouses, tight supply of nickel pig iron. Profit growth for China’s industrial firms eased in June from the previous month, data showed, as factory production slowed amid the worsening trade U.S. dispute and Beijing’s efforts to cut pollution and debt.
Nickel stocks in Shanghai bonded warehouses fell further over the week to 57,500 mt, data showed. This is down 1.7% on the week as active transactions saw Norilsk materials flow into the domestic market when import window was open.
Inflows of foreign materials into the bonded areas were stable. China’s growth outlook remains strong and this is an opportunity to accelerate re-balancing, International Monetary Fund staff said after a regular consultation with the Chinese government. However, external risks rose with escalating trade tensions and tightening global financial market conditions.
In order to achieve the desired higher-quality growth, the Chinese government was advised to continue to rein in credit growth, foster openness, increase the role of market forces and to modernize policy frameworks.
The global nickel market deficit widened to 15,400 tonnes in May from a revised deficit of 14,700 tonnes in the previous month, the International Nickel Study Group said. During the first five months of the year, the deficit widened to 69,600 tonnes from 50,100 tonnes in the same period of 2017, the data showed. A high-grade nickel pig iron (NPI) plant in north China has suspended its production since last week on environmental concerns.
Trading Ideas:
–Nickel trading range for the day is 933-952.4.
–Nickel prices gained as support seen after Chinese government’s recent fiscal stimulus.
–A high-grade nickel pig iron (NPI) plant in north China has suspended its production since last week on environmental concerns.
–Inventories across all Chinese ports increased by 360,000 wmt from a week ago to 9.85 million wmt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
