Technically MCX Nickel market is getting support at 1009.1 and below the same could see a test of 1002.8 level, and resistance is now likely to be seen at 1024.7, a move above could see prices testing 1034.
Nickel on MCX settled unchanged at 1015.50 as traders are cautious with mix fundamentals, one side we have seen as the rising death toll from the Wuhan virus outbreak deepened concerns over potential damage to economic growth and metals demand.
Chinese authorities on Wednesday said the virus had claimed a total of nine lives with 440 confirmed cases and stepped up efforts to control the outbreak. On the other side China imported 199,800 mt of ferronickel (FeNi), including nickel pig iron (NPI), in December, according to pre-declaration data from China customs.
This was down 12.76% from a month ago, but up 34.34% from a year ago. Market estimates that December’s ferronickel imports contain 35,400 mt of nickel, up 2.44% from November and 38.35% from December 2018. On the trade front, US President Donald Trump said that the European Union has “no choice” but to agree to a new trade deal.
In a meeting with European Commission President Ursula von der Leyen in Davos on Tuesday, Trump again threatened to levy tariffs on European car imports in the absence of renewed trade commitments from the bloc. Meanwhile the global nickel market deficit tightened to 1,266 tonnes in November from a shortfall of 3,077 tonnes the previous month, the International Nickel Study Group said.
--Nickel trading range for the day is 1002.8-1034.
--Nickel remain unchanged as traders are cautious with Wuhan virus outbreak deepened concerns over potential damage to economic growth.
--Wuhan virus outbreak climbed and deepened concerns over the potential damage to economic growth and metals demand.
--Trump again threatened to levy tariffs on European car imports in the absence of renewed trade commitments from the bloc.
Courtesy: Kedia Commodities