MCX Aluminium may trade between 139.7-147.5 levels
MCX Cotton under fresh buying; Resistance seen at 24326.6
MCX Cardamom under fresh buying; Support seen at 1145.9
NCDEX Jeera under fresh selling; Resistance seen at 20123
Zinc market under fresh selling; Support seen at 175
Technically Nickel market is under short covering as market has witnessed drop in open interest by 5.27% to settled at 7011 while prices up 0.4 rupees.
Now MCX Nickel is getting support at 941 and below same could see a test of 929.6 levels and resistance is now likely to be seen at 961, a move above could see prices testing 969.6.
Nickel settled flat as investors bet global trade tensions and a robust US economy would continue to support the dollar. China’s producer price index (PPI), a gauge of factory gate inflation, rose 4.6% in July from a year earlier, compared with an acceleration of 4.7% in June, data from the National Bureau of Statistics showed.
Nickel ore inventory across Chinese ports increased by 730,000 wmt from a week ago to 11.53 million wmt as of Friday August 10, data showed. In metal content, inventories grew about 6,000 mt on the week and stood at 96,000 mt.
Stocks across seven major Chinese ports rose by 600,000 wmt to 8.01 million wmt. Nickel production rose 4.7% on the month and stood at 12,400 mt in July. This is down 9.7% year on year.
More working days and better profitability at smelters in south China accounted for the month-on-month growth. Output during January-July fell 8.3% from the same period last year, and came in at 83,700 mt.
Domestic nickel production is likely to stand at 12,500 mt in August as operating rates are likely to remain largely flat on a monthly basis. NPI output in July increased 4.5% from June to 34,000 mt in nickel content.
Producers resumed production after the first round of environmental reviews, but limited capacity release and extended checks in Jiangsu limited output growth in July.
Trading Ideas:
–Nickel trading range for the day is 929.6-969.6.
–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
