Technically Nickel market is under short covering as market has witnessed drop in open interest by -12.68% to settled at 1453 while prices up 1.4 rupees.
Now MCX Nickel is getting support at 1543.3 and below same could see a test of 1534.4 levels, and resistance is now likely to be seen at 1568.4, a move above could see prices testing 1584.6.
Nickel yesterday settled up by 0.09% at 1552.3 gains due to production curbs driven by power shortages in Asia and Europe.
Also, inventories in ShFE warehouses hovered near a record low of 4,455 tonnes while stockpiles in LME warehouses declined to 149,412 tonnes, the lowest since December 2019.
Meanwhile, Kosovo’s only ferro-nickel producer Newco Ferronikeli shut down production on Friday due to soaring energy prices. The ferronickel sector is more obviously influenced by the power rationing, while the demand from the stainless steel sector picked up.
The demand from the new energy sector was still robust. And the low inventory of nickel will support the nickel prices to some extent. China’s industrial output rose 3.1% in September from a year earlier, missing expectations, and slowing from 5.3% in August, official data showed.
Retail sales grew 4.4% in September on-year, compared with a forecast 3.3% increase and a 2.5% rise in August. Fixed asset investment increased 7.3% in the first nine months from the same period a year earlier, missing expectations for a 7.9% rise and slowing from an 8.9% jump in January-August.
China’s economy has staged an impressive rebound from the COVID-19 pandemic but has recently shown signs of losing momentum, weighed down by power shortages, supply bottlenecks, sporadic COVID-19 outbreaks and regulatory crackdowns on sectors from tech to property.
Trading Ideas:
–Nickel trading range for the day is 1534.4-1584.6.
–Nickel gains due to production curbs driven by power shortages in Asia and Europe.
–Inventories in ShFE warehouses hovered near a record low of 4,455 tonnes.
–Stockpiles in LME warehouses declined to the lowest since December 2019.
Courtesy: Kedia commodities
Source: Comodity Online
