Technically Nickel market is under short covering as market has witnessed drop in open interest by 24.06% to settled at 1288 while prices up 25.6 rupees.
Now MCX Nickel is getting support at 1414.9 and below same could see a test of 1395.7 levels, and resistance is now likely to be seen at 1444.9, a move above could see prices testing 1455.7.
Nickel yesterday settled up by 1.82% at 1434 as new orders for U.S.-made goods accelerated in August, pointing to sustained strength in manufacturing even as economic growth appeared to have slowed in the third quarter because of shortages of raw materials and labor.
The implicit balance in the global nickel market is forecast to move to a surplus of 76,000 tonnes in 2022 from a deficit of 134,000 tonnes in 2021, International Nickel Study Group data showed.
The difference between LME cash nickel and the three-month contract flipped to a discount of $1 a tonne after staying in premium since Aug. 25, indicating easing tightness in nearby inventories.
Companies have cut output due to the impact of the domestic power rationing, leading to weak downstream stockpiling before the holidays. The SHFE/LME nickel price ratio inched lower from highs early last week, but rallied amid low inventory and market concerns over further inventory declines amid low prices.
Nickel ore inventory at Chinese ports grew 143,000 wmt from a week earlier to 7.49 million wmt as of September 30. Total Ni content stood at 58,800 mt. Total inventory at seven major ports stood at around 3.68 million wmt, a decline of 37,000 wmt from Friday September 24.
Trading Ideas:
–Nickel trading range for the day is 1395.7-1455.7.
–Nickel prices remained supported as new orders for U.S.-made goods accelerated in August.
–The difference between LME cash nickel and the three-month contract flipped to a discount of $1 a tonne after staying in premium since Aug. 25.
–The implicit balance in the global nickel market is forecast to move to a surplus of 76,000 tonnes in 2022 from a deficit of 134,000 tonnes in 2021.
Courtesy: Kedia Commodities
Source: Comodity Online
