Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 6.28% to settled at 1523 while prices down 10.9 rupees.
Now MCX Nickel is getting support at 1492.4 and below same could see a test of 1473.8 levels, and resistance is now likely to be seen at 1528.6, a move above could see prices testing 1546.2.
Nickel yesterday settled down by 0.72% at 1511 as the SHFE nickel inventory stopped falling and hovered around 5,000 mt, while LME inventory also rallied.
The market turned cautious ahead of the Fed’s interest rate meeting. And the domestic thermal coal and coking coal futures moved down again, pulling down the nickel prices.
The production costs of NPI plants still stood high as the electricity and coke prices were still at a high level though the coal prices regulation was quite effective, plus that only a small amount of nickel ore saw price declines.
As such, NPI prices remained in premiums over pure nickel, depressing the demand of steel mills. Euro zone manufacturing activity remained strong last month but was curtailed by supply chain bottlenecks and logistical problems which sent input costs soaring, a survey showed.
Ongoing disruptions caused by the coronavirus pandemic, alongside a shortage of heavy goods vehicle drivers, has caused product shortages and left factories struggling to get the raw materials they need.
IHS Markit’s final manufacturing Purchasing Managers’ Index (PMI) dipped to an eight-month low of 58.3 in October from September’s 58.6, shy of an initial 58.5 “flash” estimate but still comfortably above the 50-mark separating growth from contraction.
Trading Ideas:
–Nickel trading range for the day is 1473.8-1546.2.
–Nickel dropped as the SHFE nickel inventory stopped falling and hovered around 5,000 mt, while LME inventory also rallied.
–The domestic thermal coal and coking coal futures moved down again, pulling down the nickel prices.
–The market turned cautious ahead of the Fed’s interest rate meeting.
Courtesy: Kedia Commodities
Source: Comodity Online
