MCX Nickel likely to move in a range of 1143.6-1223.4
Commodity Online | October 29 2020
UPDATED 10:30:36 IST

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Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 3.84% to settled at 1854 while prices down 7.9 rupees.

Now MCX Nickel is getting support at 1159.1 and below same could see a test of 1143.6 levels, and resistance is now likely to be seen at 1199, a move above could see prices testing 1223.4.

Nickel yesterday settled down by 0.67% at 1174.5 as pressure seen after market, at roughly 2.4 million tonnes a year, had a surplus of 97,900 tonnes in the first eight months of 2020, according to the International Nickel Study Group (INSG).

However downside seen limited boosted by supply worries after the Philippines' top nickel ore producer and exporter suspended operations at its mine following an outbreak of COVID-19. Nickel Asia Corp suspended until Nov. 10 operations at Hinatuan mine after 19 employees tested positive for COVID-19.

Last year, the mine accounted for 11% of the company's total ore sales volume. Nickel's spectacular rally over the last month, fuelled by ore shortages and robust demand from China's stainless steel mills, still has momentum, but prices will retreat as supplies rise and demand dwindles.

China's exports of stainless steel fell 6,000 mt or 2.13% month on month and decreased 21.8% year on year to 263,500 mt, showed China customs data. China imported 177,100 mt of stainless steel last month, up 31.8% from August and up 74.4% from September 2019.

Recently, Typhoon Quinta and Morafi hit the Philippines, among which surigao and Zambales were seriously affected. The shipment volume greatly declined due to the weather in the Philippines in July-August, and normal shipment resumed in September, with the shipment volume reaching a new high in the year.

Trading Ideas:
--Nickel trading range for the day is 1143.6-1223.4.
--Nickel prices dropped as pressure seen after market, had a surplus of 97,900 tonnes in the first eight months of 2020.
--However downside seen limited boosted by supply worries after the Philippines' top nickel ore producer and exporter suspended operations at its mine.
--Nickel Asia Corp suspended until Nov. 10 operations at Hinatuan mine after 19 employees tested positive for COVID-19.

Courtesy: Kedia Commodities
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