Fresh selling seen in Nickel, support at 592.2
Commodity Online | June 13 2016
UPDATED 14:37:16 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1276.3

MCX Aluminium under short covering; Support seen at 144.4

MCX Nickel likely to move in a range of 887.5-912.5

NCDEX Chana under short covering; Resistance seen at 4301

MCX Zinc under fresh selling; Support seen at 200.6

Nickel settled down but gained by more than 4 percent as industrial metals strengthened, spurred by China’s improving trade outlook and concern about potential disruptions to supply in Colombia and the Philippines. The main union at South32 Ltd.’s Cerro Matoso, the world’s second-biggest ferro-nickel mine, said it will press ahead with plans to strike starting June 14. Over the weekend, Philippine President-elect Rodrigo Duterte warned mining companies whose operations threaten the environment to either upgrade their practices or face closure. There’s concern that nickel may enter a deficit if the Philippines stops providing ore to China for nickel pig iron production.

The ECB entered new territory in its efforts to stimulate the euro region’s flagging economy, plunging into the corporate bond market and buying the debt of some of the continent’s biggest companies. In China, imports slipped 0.4 percent in May, the smallest drop since late 2014, signaling improvement in domestic demand. In Friday's June flash report, Michigan's Consumer Survey Center said its consumer sentiment index fell by 0.4 to 94.3, remaining near one-year highs. Consumer sentiment has stabilized since May's robust flash report when the index soared nearly eight points, posting its best monthly reading in six years.

At a closely-watched speech on Monday, Federal Reserve chair Janet Yellen credited a significant increase in consumer spending for helping bolster GDP growth expectations over the second quarter. Technically market is under fresh selling as market has witnessed gain in open interest by 0.05% to settled at 18728 while prices down -0.7 rupee, now Nickel is getting support at 592.2 and below same could see a test of 586.9 level, and resistance is now likely to be seen at 603.4, a move above could see prices testing 609.3.

Trading Ideas:
--Nickel trading range for the day is 586.9-609.3.
--Nickel settled down but gained by more than 4 percent spurred by concern about potential disruptions to supply in Colombia and the Philippines.
--There’s concern that nickel may enter a deficit if the Philippines stops providing ore to China for nickel pig iron production.
--The ECB entered new territory in its efforts to stimulate the euro region’s flagging economy, plunging into the corporate bond market.

Courtesy: Kedia Commodities
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