MCX Nickel likely to move in a range of 1000-1042.6
Commodity Online | July 16 2020
UPDATED 10:30:24 IST

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MCX Nickel likely to move in a range of 1023.1-1083.9

MCX Zinc under short covering; Resistance seen at 186.1

MCX Copper under fresh buying; Resistance seen at 515

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 3.64% to settled at 1084 while prices down 5.8 rupees.

Now MCX Nickel is getting support at 1011 and below same could see a test of 1000 levels, and resistance is now likely to be seen at 1032.3, a move above could see prices testing 1042.6.

Nickel yesterday settled down by 0.56% at 1021.9 as sentiment was cautious after Beijing vowed retaliatory sanctions against the United States.

China’s exports unexpectedly rose in June as overseas economies reopened after lockdowns, while imports grew for the first time this year, reinforcing views the recovery from the pandemic is gaining traction in the world’s second-largest economy.

Concerns over mounting coronavirus cases globally that have prompted many regions to reintroduce curbs to restrict the outbreak, and escalated tensions between the US and China, meanwhile, kept a lid on investor sentiment.

US President Donald Trump said that he signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy.

US consumer prices rebounded by the most in nearly eight years in June, according to consumer price index data from the Labor Department, but a resurgence in new COVID-19 cases after the reopening of businesses suggests a moderation in demand that could keep inflation muted and allow the Federal Reserve to keep injecting money into the ailing economy.

In Europe, official figures revealed that UK gross domestic product (GDP) expanded by 1.8% in May following April’s historic 20.4% contraction.

Trading Ideas:
--Nickel trading range for the day is 1000-1042.6.
--Nickel dropped as sentiment was cautious after Beijing vowed retaliatory sanctions against the United States.
--Concerns over mounting coronavirus cases globally and escalated tensions between the US and China, meanwhile, kept a lid on investor sentiment.
--President Donald Trump said that he signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy.

Courtesy: Kedia Commodities