Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 23.56% to settled at 1311 while prices up 20 rupees.
Now MCX Nickel is getting support at 1042.5 and below same could see a test of 1023.1 levels, and resistance is now likely to be seen at 1072.9, a move above could see prices testing 1083.9.
Nickel yesterday settled up by 1.92% at 1061.9 as support seen after Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 52.8 for July, marking its third consecutive month of expansion.
It showed that policy stimulus is helping China, the world’s second largest economy, in its recovery from the Covid-19 pandemic. The US economy saw the biggest quarterly plunge in history. GDP from April to June plunged 32.9% on an annualised basis.
China’s manufacturing has recovered steadily, with PMI for the sector standing above 50 for five straight months, according to data from National Bureau of Statistics (NBS).
The Caixin China General Manufacturing Purchasing Managers' Index (PMI) increased to 52.8 in July, according to the latest report released by the IHS Markit.
The manufacturing activity expanded faster than it did in June with this month's number 1.6 higher than the previous result, showing the operating conditions in the sector improving at the quickest rate since January 2011.
Overall, flare-ups of the epidemic in some regions did not hurt the improving trend of the manufacturing economy, which continued to recover as more epidemic control measures were lifted. The supply and demand sides both improved, with relevant indicators maintaining strong momentum.
--Nickel trading range for the day is 1023.1-1083.9.
--Nickel gained as support seen after China's manufacturing sector up in July.
--China’s PMI came in at 52.8 for July, marking its third consecutive month of expansion.
--The US economy saw the biggest quarterly plunge in history. GDP from April to June plunged 32.9% on an annualised basis.
Courtesy: Kedia Commodities