Technically Nickel market is under short covering as market has witnessed drop in open interest by 6.21% to settled at 831 while prices up 17.2 rupees.
Now MCX Nickel is getting support at 1527.1 and below same could see a test of 1508.4 levels, and resistance is now likely to be seen at 1559, a move above could see prices testing 1572.2.
Nickel yesterday settled up by 1.13% at 1545.7 as China’s and LME nickel inventories were both at a low level, supporting nickel prices. On the fundamentals, the stainless steel and NPI markets have been quiet, and NPI prices have shown signs of pulling back.
In China, the monetary policy implementation report for Q3 disclosed by People’s Bank of China removed the representation of “the ultra-loose measures are never a choice” and “it will strictly control the master valve of currency flows”.
Instead, it emphasised that it will tackle external policy changes by enhancing exchange rate flexibility, and may loosen the monetary policy slowly and steadily, which boosted prices.
The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed.
During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, Lisbon-based INSG added.
The global markets will need four times the nickel and double the copper in the next 30 years to facilitate a decarbonised world. Both nickel and copper are poised for strong consumption as a result of the transition away from fossil fuels.
Trading Ideas:
–Nickel trading range for the day is 1508.4-1572.2.
–Nickel prices gained as China’s and LME nickel inventories were both at a low level, supporting nickel prices.
–The stainless steel and NPI markets have been quiet, and NPI prices have shown signs of pulling back.
–Global nickel market deficit shrinks in Sept to 5,200 tonnes – INSG.
Courtesy: Kedia Commodities
Source: Comodity Online
