MCX Aluminium may trade between 143.1-146.5 levels
MCX Mentha Oil under short covering; Resistance seen at 1626.8
NCDEX Chana likely to move in a range of 4062-4210
Short Covering seen in MCX Cotton
NCDEX Jeera may trade between 15325-15765 levels
Technically MCX Nickel market is getting support at 948.6 and below same could see a test of 942.2 level, And resistance is now likely to be seen at 963.2, a move above could see prices testing 971.4.
Nickel on MCX settled down 0.82% at 955.10 as pressure seen on Rupee firmness while LME nickel prices edged higher for a fourth straight session on Wednesday as low stock levels and recovering demand kept the metal used to make stainless steel at a six-month high.
LME Nickel has already gained 4.9 percent this month and is up 28.1 percent so far in 2019. The PMI for the downstream nickel industries for February stood below 50 for the fourth consecutive month, at 47.33. This occurred after an increase of 1.57 from January, showed data.
The sub-index for production nudged up 0.54 and came in at 42, supported by the downstream stainless steel sector. Pressure also seen as China’s service sector grew at the slowest pace in February, according to a private indicator on Tuesday.
This was consistent with an official gauge that pointed to growing headwinds faced by service providers. The Caixin China services PMI declined to 51.1 in February from January’s 53.6. A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.
Growth in new orders fell to the weakest since October, while export sales also rose at the slowest in five months, reflecting softer demand both at home and overseas. Now a day ahead traders are looking for China will release data on its foreign exchange reserve for February, and the US will release its ADP payroll data of last month, its trade account for December.
Trading Ideas:
–Nickel trading range for the day is 942.2-971.4.
–Nickel dropped as investors awaited more signs on whether demand in top metals consumer China would rebound after the Lunar New Year.
–Nickel stocks at 196,542 in LME-registered warehouses have nearly halved since the start of January last year, while cancelled warrants stand at 37 percent.
–Inventories in warehouses monitored by the Shanghai Futures Exchange are below 10,000 tonnes and have fallen nearly 40 percent since the middle of November.
Courtesy: Kedia Commodities
Source: Commodityonline.com
