MCX Nickel likely to move in a range of 1051.1-1100.7
Commodity Online | November 22 2019
UPDATED 10:00:16 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1321.4

NCDEX Chana under fresh buying; Resistance seen at 4423

MCX Cotton under fresh selling; Support seen at 19000

NCDEX Jeera under fresh buying; Support seen at 15790

MCX Aluminium may trade between 131.7-133.1 levels

Technically Nickel market is under short covering as market has witnessed drop in open interest by 21.4% to settled at 4867 while prices up 14.8 rupees.

Now MCX Nickel is getting support at 1066.8 and below same could see a test of 1051.1 levels, and resistance is now likely to be seen at 1091.6, a move above could see prices testing 1100.7.

Nickel on MCX settled up 1.39% at 1082.5 as support seen after update that Global nickel market in deficit. World nickel market was in deficit during the first nine months of 2019 with apparent demand exceeding production by 66,900 mt, the World Bureau of Metal Statistics (WBMS) reported.

The deficit came in at 102,900 mt for the whole of 2018. As of the end of September, reported stocks across LME warehouses were 54,300 mt lower than the end of the previous year. Production of refined nickel amounted to 1.74 million mt in January to September, while demand came in at 1.81 million mt.

During the same period, mine production stood at 1.87 million mt, up 102,000 mt year on year.Output from Chinese smelters and refineries increased by 75,000 mt from the same period last year, and apparent demand was 960,400 mt, 159,000 mt higher than a year ago.

China lowered its lending benchmark rate, as widely expected, after it cut the cost it charges on short-term open-market operations for the first time in more than four years earlier in the week.In Shanghai spot market, Russian nickel was quoted in a premium of 2,000-2,200 yuan/mt over the Shanghai Futures Exchange nickel contract for December delivery, down from 2,400-2,500 yuan/mt. Despite the plunge in prices, demand for nickel failed to improve substantially, as downstream consumption is weakening towards the year-end.

Trading Ideas:
--Nickel trading range for the day is 1051.1-1100.7.
--Nickel prices gained as support seen after update that Global nickel market in deficit.
--World nickel market was in deficit during the first nine months of 2019 with apparent demand exceeding production by 66,900 mt.
--As of the end of September, reported stocks across LME warehouses were 54,300 mt lower than the end of the previous year.

Courtesy: Kedia Commodities

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