Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 3.24% to settled at 1523 while prices down 5.9 rupees.
Now MCX Nickel is getting support at 1539.9 and below same could see a test of 1530.5 levels, and resistance is now likely to be seen at 1559.9, a move above could see prices testing 1570.5.
Nickel yesterday settled down by 0.38% at 1549.2 as traders weighed inflation and pandemic woes against a stronger demand outlook in China.
US consumer prices climbed 6.8% YoY in November, the steepest price hike since June of 1982, strengthening the case for a faster unwinding of stimulus by the US Fed.
Meanwhile, the Prime Minister of the UK warned that the nation was facing a “tidal wave” of the omicron coronavirus strain and that two doses of the vaccine wouldn’t be enough to contain it.
Elsewhere, Chinese policymakers pledged to implement prudent monetary policy and proactive fiscal policies to stabilize the economy and support growth to a reasonable range in 2022.
Earlier, the nation’s top decision-making body had vowed to promote the healthy development of the property sector, a key pillar of copper demand.
China’s Tsingshan Holding Group said it had officially started producing nickel matte an intermediate nickel product that can be further processed into chemicals for electric vehicle (EV) batteries in Indonesia.
The company sent nickel prices nosediving in March when it announced plans to mass-produce matte and sell it to Huayou Cobalt and CNGR , both of which supply EV battery materials, from October. It had already achieved trial production in 2020.
Trading Ideas:
–Nickel trading range for the day is 1530.5-1570.5.
–Nickel dropped as traders weighed inflation and pandemic woes against a stronger demand outlook in China.
–Chinese policymakers pledged to implement prudent monetary policy and proactive fiscal policies to stabilize the economy and support growth.
–US consumer prices climbed 6.8% YoY in November, the steepest price hike since June of 1982.
Courtesy: Kedia Commodities
Source: Comodity Online
