Mentha Oil market under long liquidation; Support seen at 1701.5
Aluminium may trade between 143.4-147.8 levels
Zinc market under fresh selling; Support seen at 164.7
MCX Copper expected to trade between 417.1-435.9 levels
MCX Natural Gas may trade between 196.8-204.2 levels
Technically MCX Nickel is getting support at 886.5 and below same could see a test of 879.6 levels and resistance is now likely to be seen at 905.8, a move above could see prices testing 918.2.
Nickel on MCX settled down -0.85% at 893.4 as pressure on prices on worries that the U.S.-China trade dispute will damage growth. China reported better-than-expected industrial output and retail sales, but a key investment gauge fell to a fresh record low, highlighting the challenges facing Beijing as it tries to support the economy in the face of rising U.S. tariffs.
The data, along with earlier softer readings on trade and credit growth, reinforce consensus views that the world’s second-largest economy is cooling but not at risk of a sharp slowdown yet. Industrial output rose 6.1 percent in August from a year earlier.
Slower production increases in leading supplier Indonesia and continued growth in stainless steel demand are forecast to extend a supply shortage in the global nickel market, supporting price gains. Nickel, which recently hit its lowest since December, could climb as high as $16,000 a tonne by the end of 2018 and $18,000 a year later.
Nickel has been supported by stainless steel demand growth that exceeded 9 percent in the first half of 2018. But concerns have emerged in recent months that global growth has peaked against the backdrop of an evolving trade war between the United States and China, dampening the outlook for the 2.2-million-tonne per year global nickel market.
China’s steel output eased 1.1 percent to 80.33 million tonnes in August after hitting a record-high in July, reflecting tough production restrictions in major steelmaking regions as part of efforts to clear the country’s smoggy skies.
Trading Ideas:
–Nickel trading range for the day is 879.6-918.2.
–Nickel dropped as pressure on prices on worries that the U.S.-China trade dispute will damage growth.
–Slower production increases in Indonesia and continued growth in stainless steel demand are forecast to extend a supply shortage in the global nickel market, supporting price.
–China was considering allowing its northern provinces to determine their own restrictions on industrial output this winter.
Courtesy: Kedia Commodities
Source: Commodityonline.com
