Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 39.07% to settled at 1349 while prices down 7.8 rupees.
Now MCX Nickel is getting support at 1511 and below same could see a test of 1491.7 levels, and resistance is now likely to be seen at 1555.8, a move above could see prices testing 1581.3.
Nickel yesterday settled down by 0.51% at 1530.4 as Nickel ore inventory at Chinese ports grew 130,000 wmt from a week earlier to 8.45 million wmt as of October 24, the seventh straight week of increase.
Total Ni content stood at 66,300 mt. Total inventory at seven major ports stood at around 4.43 million wmt, a rise of 707,000 wmt from a week earlier.
While the NPI was more greatly affected by the energy consumption control policy, so its recovery has lagged behind.NPI prices will remain high amid supply shortage caused by slow recovery and high costs.
Nickel output from the Philippines, the second-largest producer, is expected to be 10% lower than the annual average due to frequent rainfalls and fewer vessels coming in.Also, the latest data showed nickel production at Russian miner Nornickel fell 23% from a year earlier to 129,858 tons in the first three quarters of the year.
Moreover, Vale SA cut its production guidance for this year to 165,000-170,000 tonnes from 200,000 previously projected amid a strike at its Canadian mine while it’s Brazilian mine at Onca Puma is suspended by the court.
The People’s Bank of China (PBOC) injected a total CNY 100 billion of seven-day reverse repos into the banking system for the third consecutive day at an interest rate of 2.2 percent on October 22nd.
Trading Ideas:
–Nickel trading range for the day is 1491.7-1581.3.
–Nickel prices dropped as Nickel ore inventory at Chinese ports grew 130,000 wmt from a week earlier to 8.45 million wmt.
–Nickel output from the Philippines, is expected to be 10% lower than the annual average due to frequent rainfalls and fewer vessels coming in.
–PBoC injected a total CNY 100 billion of seven-day reverse repos into the banking system for the third consecutive day at an interest rate of 2.2 percent.
Courtesy: Kedia Commodities
Source: Comodity Online