Zinc market under fresh selling; Support seen at 177.9
Short cover seen in MCX Cotton
Copper market under short covering; Resistance seen at 418.1
Natural Gas market under fresh buying; Support seen at 202.2
Short cover seen in MCX Cardamom; Support seen at 1107.2
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 9.69% to settled at 7401 while prices down 8.2 rupees.
Now MCX Nickel is getting support at 945.1 and below same could see a test of 938.2 levels and resistance is now likely to be seen at 964.2, a move above could see prices testing 976.4.
Nickel on MCX settled down 0.85% at 952.10 while prices gained in morning session after the dollar weakened against a basket of major currencies as its recent rally fuelled by U.S.-China trade tensions appeared to fizzle.
A fundamental tightness in the nickel market could also add more support to nickel prices. As the Philippines government confirmed that just 23 out of the 27 mines that operate in the world’s second-largest nickel-producing country will continue to operate.
The remaining four will likely close. Also Stainless steel price momentum slowed down slightly this month. However, both steel and nickel remain in a bull market.
Therefore, buying organizations may want to follow the market closely for opportunities to buy on the dips. Last night the dollar index jumped 0.54% to 95.61 overnight as investors bet global trade tensions and a robust US economy would continue to support the currency.
Better-than-expected data on US initial jobless claims and generally rising producer prices also helped the dollar hold its gains. LME base metals closed mixed on Thursday. Day ahead key things to watch today include China’s total social financing and M2 money supply in July, US consumer inflation in July and Baker Hughes data on US weekly oil-rig count.
Trading Ideas:
–Nickel trading range for the day is 938.2-976.4.
–Nickel dropped as investors bet global trade tensions and a robust US economy would continue to support the dollar.
–Nickel production rose 4.7% on the month and stood at 12,400 mt in July, this is down 9.7% year on year.
—Discounts of high-grade nickel pig iron (NPI) to refined nickel prices are expected to widen this month due to an increasing supply of the former.
Courtesy: Kedia Commodities
Source: Commodityonline.com
