MCX Nickel likely to move in a range of 1470.3-1550.7

Technically Nickel market is under short covering as market has witnessed drop in open interest by 0.14% to settled at 1479 while prices up 2 rupees.

Now Nickel is getting support at 1495.4 and below same could see a test of 1470.3 levels, and resistance is now likely to be seen at 1535.6, a move above could see prices testing 1550.7.

Nickel yesterday settled flat at 1520.5 amid the slower decline in domestic nickel plate inventory and large inflows of imported goods.The nickel ore inventory at Chinese ports grew 540,000 wmt from a week earlier to 8.987 million wmt as of October 29.

The total inventory at seven major ports stood at around 4.69 million wmt, a growth of 260,000 wmt from a week earlier.China imported 306,500 mt of NPI and ferronickel in September 2021, a decrease of 12.34% month-on-month and 10.09% year-on-year, according to customs data.

The cumulative imports from January to September were 2.8 million mt. The total amount of imported NPI and ferronickel in September stood at 47,900 mt of nickel content, a decrease of 8.19% month-on-month and 18.23% year-on-year.

In September, the imports of NPI were approximately 260,000 mt, a decrease of 14.6% month-on-month. And the imports of ferronickel stood at approximately 48,000 mt, an increase of 2.5% month-on-month.

Some mining areas in the Philippines have entered rainy season in October, thus the exports of nickel ore to China will decline sharply and it is difficult to maintain a good grade.The nickel ore inventory at plants is adequate amid power rationing policy and pre-stage restocking on the rainy season estimate.

Trading Ideas:
–Nickel trading range for the day is 1470.3-1550.7.
–Nickel settled flat amid the slower decline in domestic nickel plate inventory and large inflows of imported goods.
–The nickel ore inventory at Chinese ports grew 540,000 wmt from a week earlier to 8.987 million wmt.
–China imported 306,500 mt of NPI and ferronickel in September 2021, a decrease of 12.34% month-on-month and 10.09% year-on-year.

Courtesy: Kedia Commodities

Source: Comodity Online