Technically Nickel market is under long liquidation as market has witnessed drop in open interest by -6.3% to settled at 1472 while prices down 2.8 rupees.
Now MCX Nickel is getting support at 1157.6 and below same could see a test of 1149.3 levels, and resistance is now likely to be seen at 1171.6, a move above could see prices testing 1177.3.
Nickel yesterday settled down by 0.24% at 1165.9 after Russia's Nornickel Q3 nickel production rose by 8% quarter-on-quarter to 60,165 tonnes due to ramp-up of nickel refinery at the Kola Peninsula.
However downside seen limited as supply continued to be tight after the Philippines entered a wet season. Refined nickel supply is likely to be short in the near term due to its improved demand and small inflow of imported cargoes.
China’s refined nickel output declined 13.81% or about 2,000 mt from August and 7.26% from a year earlier, to 12,300 mt in September. Output at Gansu and Liaoning smelters shrank 12% and 40% on the month respectively, as they overhauled production lines, while output at Xinjiang smelters fell 23.79% as they adjusted production schedule in the middle of the month.
Smelters in Shandong kept low operating rates, with output flat on the month, while smelters in Tianjin and Guangxi remained suspended and no resumption plan has been heard by far. China’s NPI output rose 2.91% from August to 46,000 mt Ni in September, but was 12.74% lower than a year earlier.
China’s nickel sulphate output rose 4.26% on the month and 28.46% on the year, to 63,100 mt or 13,900 mt in nickel content in September. China's third-quarter GDP grew 4.9% as compared to a year ago, according to data by the country's National Bureau of Statistics.
--Nickel trading range for the day is 1149.3-1177.3.
--Nickel prices dropped after Russia's Nornickel Q3 nickel production rose by 8% quarter-on-quarter to 60,165 tonnes.
--However downside seen limited as supply continued to be tight after the Philippines entered a wet season.
--Refined nickel supply is likely to be short in the near term due to its improved demand and small inflow of imported cargoes.
Courtesy: Kedia Commodities