MCX Crude Oil may trade in a range between 3436-3900
Long liquidation seen in MCX Aluminium; Support seen at 135.8
MCX Mentha Oil under short covering; Resistance Seen at 1680
Silve market under long liquidation; Support seen at 35724
Gold market under long liquidation; Support seen at 30422
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 13.23% to settled at 15581 while prices down 6.3 rupees.
Now MCX Nickel is getting support at 754.6 and below same could see a test of 744.9 level, And resistance is now likely to be seen at 771.6, a move above could see prices testing 778.9.
Nickel on MCX settled down 0.82% at 764.4 as prices remained under pressure amid expectations of a supply avalanche hitting the nickel market next year due to new capacity in Indonesia. Nickel prices were driven to the lowest in 11 months by worries about a supply surplus in 2019 and weaker demand from China, the largest consumer.
Adding to the bearish mood for nickel was a report that German chemicals giant BASF planned to use less of the metal in its electric car batteries. Electric vehicles have been touted as a major new source of demand.
It is part of flurry of activity in the sphere of cathodes materials, a major component of battery cells for an anticipated switch to electric vehicles (EV) due to clean air regulation. The global nickel market deficit widened slightly to 9,200 tonnes in September from the previous month’s revised deficit of 8,100 tonnes, the International Nickel Study Group (INSG) said.
During the first nine months of the year the deficit widened to 108,300 tonnes from 72,800 tonnes in the same period of 2017, the data showed.
Nickel ore inventories across all Chinese ports decreased by 50,000 wmt from a week ago to stand at 14.46 million wmt as of Friday November 23, data showed. In metal content, stocks shrank 400 mt for the same period and stood at 121,000 mt. Stocks across seven major Chinese ports declined 70,000 wmt to 10.52 million wmt.
Trading Ideas:
–Nickel trading range for the day is 744.9-778.9.
–Nickel remained under pressure amid expectations of a supply avalanche hitting the nickel market next year due to new capacity in Indonesia.
–Nickel prices were driven to the lowest in 11 months by worries about a supply surplus in 2019 and weaker demand from China, the largest consumer.
–The global nickel market deficit widened slightly to 9,200 tonnes in September from the previous month’s revised deficit of 8,100 tonnes, the INSG said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
