Technically Nickel market is under short covering as market has witnessed drop in open interest by 12.42% to settled at 1206 while prices up 0.9 rupees.
Now MCX Nickel is getting support at 1190.6 and below same could see a test of 1181.2 levels, and resistance is now likely to be seen at 1207.5, a move above could see prices testing 1215.
Nickel yesterday settled up by 0.08% at 1199.9 as support seen after data showed that manufacturing activities in Europe, the US and Asia expanded rapidly, and this, combined with expectations of further fiscal stimulus from the US and a solid global economy recovery, is likely to further boost prices in the near term.
Investor appetite for risk increased on the prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.
News of a proposed COVID bill sank the dollar further, as did the resumption of talks between U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi about a stimulus package. The two have not spoken since before the Nov. 3 U.S. election.
The proposed relief bill was $908 billion and would fund measures through March 31, including $228 billion in additional paycheck protection funds for hotels, restaurants and other small businesses.
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven support. Speculation is growing that the Federal Reserve will act to support the economy through a tough winter before vaccinations become available. Euro zone inflation remained in negative territory for the fourth consecutive month in November, strengthening the case for further stimulus from the European Central Bank in December.
--Nickel trading range for the day is 1181.2-1215.
--Nickel gained as support seen after data showed that manufacturing activities in Europe, the US and Asia expanded rapidly.
--Support also seen amid expectations of further fiscal stimulus from the US and a solid global economy recovery.
--Investor appetite for risk increased on the prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.
Courtesy: Kedia Commodities