Technically Nickel market is under short covering as market has witnessed drop in open interest by 9.9% to settled at 1238 while prices up 11.3 rupees.
Now MCX Nickel is getting support at 1498.2 and below same could see a test of 1482.4 levels, and resistance is now likely to be seen at 1530.4, a move above could see prices testing 1546.8.
Nickel yesterday settled up by 0.75% at 1513.9 as 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; and 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 its Brazilian mine at Onca Puma is suspended by the court.
Elsewhere, recent data showed China’s imports of nickel pig iron, a cheap substitute of refined nickel, fell in September. China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%.
The actual output in October did not decrease, and the output of major refineries in Gansu was relatively stable. The output of refined nickel is expected to stand at around 14,500 mt in November.
Domestic refineries’ production activities are relatively stable at the moment. The national nickel pig iron (NPI) output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content.
Trading Ideas:
–Nickel trading range for the day is 1482.4-1546.8.
–Nickel gains as nickel output from the Philippines, is expected to be 10% lower than the annual average.
–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.
–China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month.
Courtesy: Kedia Commodities
Source: Comodity Online
