AHMEDABAD (Commodity Online): Nickel traded with positive sentiment and closed at 998.30 rupees after making high of 1003.70 rupees more then 1.80% on MCX tracking LME Nickel prices which climbed due along with dollar index on account of 2nd bailout of Greece allowed.
Production will exceed demand by 45,000 metric tons, a 73 percent jump from 2011, Barclays Capital estimates. That’s equal to 46 percent of stockpiles tracked by the London Metal Exchange. Refined output will rise 12 percent, the most in at least eight years, according to Morgan Stanley. Prices, which rose 9 percent to $20,350 a ton this year, may fall as much as 13 percent to $17,630 a ton by Dec. 31, the median of 11 analyst estimates compiled by Bloomberg shows.
Refined production will reach almost 1.77 million tons this year as demand increases 10 percent to 1.72 million tons, providing surpluses for at least two more years, Morgan Stanley estimates. Stockpiles in warehouses monitored by the LME rose 17 percent to 97,308 tons since Nov. 9, bourse data show. Orders to withdraw metal from inventories declined 58 percent since reaching a seven-year high in August.
Technically on charts Nickel prices broke its 100 DEMA at 973 levels with huge voume which lead to high open interst.For todays session it can be bought on dips near 992 with stoploss of 981 for the target of 1008 rupees informed Rushabh Mehta, analyst with Commodity Online.
To get in touch with the Analyst on this report or to get a free trial on trading advisories call 079-40275050 or mail to tips@commodityonline.com.
Get Trading tips on your mobile
