Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 52.8% to settled at 1010 while prices up 19.9 rupees.
Now MCX Nickel is getting support at 1441.7 and below same could see a test of 1419.2 levels, and resistance is now likely to be seen at 1479.7, a move above could see prices testing 1495.2.
Nickel yesterday settled up by 1.38% at 1464.1 as prices seen supported by optimism that China, the biggest market, can avoid a damaging collapse of one of its biggest property developers, Evergrande.
Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds. The global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes, data from the International Nickel Study Group (INSG) showed.
During the first seven months of the year, the nickel market saw a deficit of 158,900 tonnes compared with a surplus of 80,500 tonnes in the same period last year, the INSG added.
The demand of nickel fell as the influence of production reduction of stainless steel began to materialise.Transactions of ferronickel and nickel ore were thin. But the inventory of pure nickel stood at a low level, support nickel prices amid falling LME warrants.
The number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California, but the labor market continues to steadily recover.Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week ended Sept. 18, the Labor Department said.
Trading Ideas:
–Nickel trading range for the day is 1419.2-1495.2.
–Nickel gains as prices seen supported by optimism that China, can avoid a damaging collapse of one of its biggest property developers, Evergrande.
–Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds.
–Global nickel market deficit narrows in July to 24,700 T – INSG.
Courtesy: Kedia Commodities
Source: Comodity Online
