Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 7.53% to settled at 1656 while prices down 13.1 rupees.
Now MCX Nickel is getting support at 1397 and below same could see a test of 1381.3 levels, and resistance is now likely to be seen at 1431.4, a move above could see prices testing 1450.1.
Nickel yesterday settled down by 0.92% at 1412.8 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.
The inventory of nickel ore rose more slowly, and the supply of raw materials remained tight. Besides, the accident of a nickel mine in Canada has triggered market concerns over supply.
In China, the power rationing has also brought influences to the ferronickel plants. Meanwhile, many downstream steel mills have carried out maintenance recently, dragging down the supply. The new energy sector was still robust, with sound demand for nickel briquette.
Contracts to buy U.S. previously owned homes rebounded to a seven-month high in August, but higher prices amid tight supply are slowing the housing market momentum.
The National Association of Realtors (NAR) said its Pending Home Sales Index, based on signed contracts, jumped 8.1% last month to 119.5. That was the highest reading since January and followed two straight monthly declines.
Trading Ideas:
–Nickel trading range for the day is 1381.3-1450.1.
–Nickel prices dropped as the global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes.
–The inventory of nickel ore rose more slowly, and the supply of raw materials remained tight.
–Besides, the accident of a nickel mine in Canada has triggered market concerns over supply.
Courtesy: Kedia Commodities
Source: Comodity Online
