MCX Nickel under fresh selling; Support seen at 854.5

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 19.46% to settled at 6158 while prices down 13.7 rupees.

Now MCX Nickel is getting support at 854.5 and below same could see a test of 845.9 level, And resistance is now likely to be seen at 877.7, a move above could see prices testing 892.3.

Nickel on MCX settled down 1.56% at 863.10 dropped sharply on fresh selling as a decline in crude prices dragged LME nickel past the 20-day moving average to a low of $12,145/mt on Thursday. LME nickel ended lower at $12,195/mt.

Pressure also seen as the Chinese economy is slowing down, people want to know the magnitude of that. They are waiting to see data on key areas such as credit growth and infrastructure spending. Base metals, except for lead, traded lower on Thursday.

Nickel tumbled 1.56%, aluminium and zinc dropped -0.61 & -0.70% and copper in range 0.07%. The US dollar index fell on Thursday, weighed by a string of disappointing US data, with retail sales recording their biggest drop in nine years in December and weekly jobless claims registering an increase.

Also China on Thursday reported exports and imports data for January that beat expectations. Dollar-denominated exports for the month rose 9.1% from a year ago, according to Chinese customs data.

China’s exports in January were expected to have contracted 3.3% from a year earlier, compared with the previous month’s 4.4% decline. January dollar-denominated imports, meanwhile, fell 1.5% on the year, which was far better than expectations of a 10.2% decline from a year earlier.

Imports in December fell 7.6% from a year ago. China’s overall trade surplus was $39.16 billion in January and exceeded the expected $34.3 billion. That stood lower than December’s trade surplus of $57.06 billion.

Trading Ideas:
–Nickel trading range for the day is 845.9-892.3.
–Nickel dropped on profit booking as investors awaited their cue from the outcome of Sino-U.S. trade talks in Beijing
–U.S. President Donald Trump said he could let the deadline for a trade agreement “slide for a little while”.
–China produced 12,100 mt of refined nickel in Jan, up 1.44% from a year earlier

Courtesy: Kedia Commodities