Mentha Oil market under long liquidation; Support seen at 1688
Aluminium market is under short covering; Support seen at 146.9
Zinc market under short covering; Support seen at 177.7
Copper market under fresh buying; Support seen at 444.7
MCX Cotton under short covering; Resistance seen at 22366.6
Technically Nickel market is under short covering as market has witnessed drop in open interest by 17.32% to settled at 8879 while prices up 47.5 rupees.
Now MCX Nickel is getting support at 923.9 and below same could see a test of 893.5 levels and resistance is now likely to be seen at 970.8, a move above could see prices testing 987.3.
Nickel on MCX settled up 5.24% at 954.4 as investors expected trade tariffs to have less impact on global growth than some had feared. The global nickel market deficit widened to 15,300 tonnes in July from a revised deficit of 13,600 tonnes in the previous month, the International Nickel Study Group said.
During the first seven months of the year, the deficit widened to 97,100 tonnes from 51,800 tonnes in the same period of 2017, the data showed. Indonesia-based miner PT Ifishdeco earlier this month received the green light to export 4 million wmt of nickel ore after it exhausted 990,000 wmt of quota approved in late 2017.
As large amounts of quota across Indonesian miners would expire in October-November, more new quota to be approved in near term. Those additional nickel ore export quota is unlikely to boost the supply in the Chinese market in the rest of the year.
The delivery capacity at hubs is set to limit the shipments. Quota may not be run out before getting expired. Besides, there has yet to be any new miner to get such approval to export nickel ore since March. nickel ore imports from Indonesia to stand at about 30 vessels, or 1.65 million wmt per month in the remaining months of the year.
Several global metals producers have set their sights on Indonesia’s nickel reserves to tap an expected surge in demand for the metal for electric vehicle batteries.
Trading Ideas:
–Nickel trading range for the day is 893.5-987.3.
–Nickel prices rallied as investors expected trade tariffs to have less impact on global growth than some had feared.
–The global nickel market deficit widened to 15,300 tonnes in July from a revised deficit of 13,600 tonnes in the previous month, the INSG said.
–Several global metals producers have set their sights on Indonesia’s nickel reserves to tap an expected surge in demand for the metal for electric vehicle batteries.
Courtesy: Kedia Commodities
Source: Commodityonline.com
