MCX Crude Oil may trade between 5319-5643 levels
MCX Natural Gas likely to move in a range of 237.4-252.6
MCX Copper likely to move in a range of 454.1-466.7
MCX Zinc under long liquidation
MCX Aluminium may trade between 150-154.4 levels
Technically Nickel market is getting support at 935.9 and below same could see a test of 928.6 level, And resistance is now likely to be seen at 955.7, a move above could see prices testing 968.2.
Nickel on MCX settled down 1.75% at 943.30 as pressure seen on long liquidation tracking weakness from LME nickel prices which closed down 2.6 per cent at $12680 as pressured by broad strength in the US dollar index amid indications from the International Monetary Fund that ongoing trade tensions may stunt global economic growth.
Holding the majority of gains made at Tuesday’s close, the three-month nickel price continues to trade around the $13,000-per-tonne mark, with the metal’s 3.3% price rally largely due to the metal’s improving fundamental backdrop.
Strong demand from the stainless steel sector continues to keep nickel prices broadly elevated, however renewed discussion of developments in the electric vehicle sector at this year’s LME Week has also facilitated buying.
Meanwhile Norilsk Nickel – one of the world’s largest nickel producers – commented on the situation on the global nickel market, albeit only in very vague terms. The company expects a supply deficit of between 50,000 and 150,000 tonnes next year.
Last night the euro and pound rose underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies even as US bond yields hovered at multiyear peaks. While on LME base metals, all metals fell across the board on Wednesday.
Zinc and nickel dropped over 2%, copper and lead lost over 1%, aluminium declined close to 1%. Now day ahead some data to monitor today include China’s total social financing (TSF) and M2 money supply in September, US consumer inflation in September, weekly jobless claims and crude inventories.
Trading Ideas:
–Nickel trading range for the day is 928.6-968.2.
–Nickel dropped on profit booking after prices seen supported after Environmental restrictions are likely to support nickel prices into the winter.
–Also Winter cuts will impact NPI prices to a greater extent this year than the last and this is likely to keep nickel prices tighter over winter.
–In Indonesia, NPI production will increase in the fourth quarter, driven by increasing operating rate from Delong and more capacity slated to be commissioned.
Courtesy: Kedia Commodities
Source: Commodityonline.com
