AHMEDABAD (Commodity Online): MCX Nickel July futures opened negative on Wednesday at Rs 901.20. It is trading in negative territory at Rs 897.60 down by 0.38%, against its previous closing of Rs 901 per kg.
Nickel yesterday traded with the negative node and settled -1.81% down at 901 as pressure seen after China's imports dropped sharply and the slow progress of Euro Zone Finance Minister’s meeting. Market believes the meeting has been progressing slowly to raise any substantial measures for resolving the European debt crisis. Thus, uncertainties caused concerns and prevented base metals from picking up.
According to Bhavik Patel, Analyst at Commodity Online, technically on daily charts, MCX Nickel is bearish only but also in oversold territory. Fresh shorts have to be taken with caution as the downside is restricted owing to support around levels of Rs. 892 and Rs. 885. Technical bounce back is expected in this metal after which again it will continue its bearish journey until stability arises in Euro and bad news are digested by the market which is expected to come this Friday from China.
Intra-day traders advised to Buy MCX Nickel July future above Rs. 902 with target of Rs.910 and Stop loss of Rs.894, added Bhavik.
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