MCX Aluminium likely to move in a range of 146.5-149.9
MCX Cotton under short covering
MCX Cardamom under fresh buying; Resistance seen at 1446.7
NCDEX Jeera under fresh selling; Support seen at 19840
MCX Mentha Oil under short covering
Technically Nickel market is under short covering as market has witnessed drop in open interest by 0.44% to settled at 9411 while prices up 2.2 rupees.
Now MCX Nickel is getting support at 910.9 and below same could see a test of 905.4 level, And resistance is now likely to be seen at 925, a move above could see prices testing 933.6.
Nickel on MCX settled up 0.24% at 916.50 as support seen from short covering also support seen after the report that market had a structural global deficit of 140,000 tonnes this year meaning far more nickel was being consumed than produced.
That deficit would likely be maintained next year. Two bad years for nickel which saw prices plummet to below USD 11,300 per tonne in February 2016 had left the industry “shell-shocked” and still wary about committing to new mines and processing operations.
LME nickel prices have been recovering since 2016. Now Vale believes nickel prices would have to be sustained at that USD 28,000 per tonne mark for it to consider developing its vast nickel reserves in Indonesia.
Last night the US dollar rose on Monday as the pound fell on news that Brexit negotiations with the European Union over Northern Ireland remain in flux and as uncertainty over Italy’s budget continued to lower the euro.
Now a day ahead in the US, the Federal Reserve Bank of Richmond will reveal its manufacturing index for October. Minneapolis Fed President Neel Kashkari will deliver the welcome address and opening remarks at an early childhood conference hosted by the Minneapolis Fed. October consumer confidence in the euro area and the September producer price index (PPI) for Germany will be released.
Trading Ideas:
–Nickel trading range for the day is 905.4-933.6.
–Nickel prices seen supported after regulators in China pledged support for firms with liquidity issues brought on by months of slowing growth.
–The global nickel market deficit narrowed to 7,100 tonnes in August from the previous month’s revised deficit of 16,500 tonnes, the INSG said.
–LME nickel stocks have slumped by 43 percent since this time last year to around 220,000 tonnes.
Courtesy: Kedia Commodities
Source: Commodityonline.com
