MCX Nickel under fresh buying; Resistance seen at 878.8

Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 3.94% to settled at 5641 while prices up 5.5 rupees.

Now MCX Nickel is getting support at 878.8 and below same could see a test of 871.2 level, And resistance is now likely to be seen at 892.7, a move above could see prices testing 899.

Nickel on MCX settled up 0.62% at 886.50 gained on fresh buying after Low-level inventories of nickel and resumption of downstream buyers supported prices.

While sentiments may turn up as Brazil’s government on Monday banned new upstream mining dams and ordered the decommissioning of all such dams by 2021, targeting the type of structure that burst last month in the town of Brumadinho, killing hundreds of people.

Last night LME base metals traded mixed on Monday. The US dollar index, which measures the dollar against a basket of rivals, slipped on Monday as optimism over a breakthrough in US-China trade talks drove investors to the euro and riskier currencies.

Now a day ahead Economic data slated for release today include the February ZEW economic sentiment for the eurozone and Germany as well as weekly US crude stocks report from the American Petroleum Institute (API).

While Investors will also be looking ahead to minutes of the Fed’s January policy meeting on Wednesday for further clarity on interest rate hikes this year. Higher rates tend to weigh on metals.

Trading Ideas:
–Nickel trading range for the day is 871.2-899.
–Nickel prices gained as low-level inventories of nickel and resumption of downstream buyers supported prices.
–China’s banks made the most new loans on record in January after government efforts to jump-start investment and prevent a sharp slowdown.
–That offset less positive data showing China’s factory-gate inflation slowed for a seventh straight month in January.

Courtesy: Kedia Commodities