Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 2.53% to settled at 1217 while prices down 10.6 rupees.
Now MCX Nickel is getting support at 1443.5 and below same could see a test of 1435.4 levels, and resistance is now likely to be seen at 1465.2, a move above could see prices testing 1478.8.
Nickel yesterday settled down by 0.72% at 1451.7 as 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 Lisbon-based INSG added.
Expectations of output curbs on stainless steel mills in China because of power shortages have undermined sentiment in the nickel market. Two-thirds of nickel consumption is accounted for by the stainless steel industry, mostly located in China.
In China, the nickel ore inventory rose at a lower pace, thus the tight supply pattern remains. The demand from the downstream steel mills was sluggish amid frequent maintenance. While the new energy sector maintained its fast development, creating more demand for nickel briquette.
The Fed indicated that the tapering of debt purchase will probably finish by mid-2022, and the interest hike may come earlier than expected, signalling hawkish stance. The prices of nickel fell recently, prompting the downstream sector to purchase on the dip. Meanwhile, the inventory in China and overseas market has been falling, underpinning nickel prices.
Trading Ideas:
–Nickel trading range for the day is 1435.4-1478.8.
–Nickel prices dropped as the global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes.
–Expectations of output curbs on stainless steel mills in China because of power shortages have undermined sentiment in the nickel market.
–In China, the nickel ore inventory rose at a lower pace, thus the tight supply pattern remains.
Courtesy: Kedia Commodities
Source: Comodity Online
