MCX Nickel under long liquidation; Support seen at 737.7

Long liquidation seen in MCX Aluminium

MCX Mentha Oil under fresh selling; Resistance seen at 1493

NCDEX Chana under fresh buying; Support seen at 4311

Zinc market under long liquidation; Support seen at 171.6

MCX Cotton under short covering

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 16.66% to settled at 12190 while prices down 2 rupees.

Now MCX Nickel is getting support at 737.7 and below same could see a test of 731.7 level, And resistance is now likely to be seen at 749.1, a move above could see prices testing 754.5.

Nickel on MCX settled down 0.27% at 743.6 as downbeat economic data and trade tensions with the US weigh on investor sentiment. China is expected to see a well-supplied nickel ore market in 2019 as Indonesian authorities allocated more export quota.

As of now, a total of 44.03 million wmt of nickel ore export quota has been approved since the Southeast Asian country lifted its ban on exports of nickel ore in early 2017. About 19.61 million wmt of export quota is still effective with 5.29 million wmt getting approved in November-December.

A global nickel market deficit will nearly halve to 49,000 tonnes in 2019 from 93,000 tonnes this year on higher output of primary metals by global suppliers and of lower-grade nickel pig iron (NPI) in Indonesia, Sumitomo Metal Mining said.

Sumitomo Metal, Japan’s biggest nickel smelter, said global demand for nickel is seen increasing by 3.4 percent in 2019 from this year to 2.339 million tonnes, while supply is expected to climb 5.5 percent to 2.29 million tonnes.

Nickel inventories in the Shanghai bonded areas changed little from a week ago and stood at 28,000 mt as of Friday December 28, data showed.A closed import arbitrage window from last week prevented bonded cargoes from moving into domestic markets.

Downstream buyers mostly ceased purchasing imports on year-end settlement. Nickel ore inventories across all Chinese ports gained 180,000 wmt from a week ago to stand at 13.88 million wmt as of Friday December 28, data showed.

Trading Ideas:
–Nickel trading range for the day is 731.7-754.5.
–Nickel dropped as downbeat economic data and trade tensions with the US weigh on investor sentiment.
–China is expected to see a well-supplied nickel ore market in 2019 as Indonesian authorities allocated more export quota.
–Nickel inventories in the Shanghai bonded areas changed little from a week ago and stood at 28,000 mt.

Courtesy: Kedia Commodities

Source: Commodityonline.com