Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 10.98% to settled at 1411 while prices down 15.2 rupees.
Now MCX Nickel is getting support at 1196.1 and below same could see a test of 1187.9 levels, and resistance is now likely to be seen at 1215, a move above could see prices testing 1225.7.
Nickel yesterday settled down by 1.25% at 1204.4 as global output of iron-nickel in 2020 is likely to increase slightly to 429,000 mt (Ni content), from 415,000 mt (Ni content) compared to a year ago.
The global nickel market surplus narrowed to 3,500 tonnes in September from 10,000 tonnes the previous month, the International Nickel Study Group (INSG) said.
For the first nine months of this year there was a global surplus of 108,900 tonnes compared with a deficit of 37,500 tonnes in the same period last year, Lisbon-based INSG added.
A large-scale ferronickel plant in East China has taken the initiative to reduce production by 50% due to the sluggish ferronickel market. It has started to reduce production at the beginning of this month.
There were few transactions in the past two months and the market was oversupplied. The large-scale plant has taken the initiative to reduce production and some small plants are short of raw materials recently.
The production will also decline and the concentrated production reduction will occur at the end of the year. The supply reduction is likely to support the prices of ferronickel.
Positive momentum in the race for a coronavirus vaccine has boosted global markets. Earlier this week, AstraZeneca announced that interim analysis showed its vaccine has an average efficacy of 70% in protecting against the virus.
--Nickel trading range for the day is 1187.9-1225.7.
--Nickel prices dropped after update annual global output of iron-nickel to rise by 3.4% in 2020.
--The global nickel market surplus narrowed to 3,500 tonnes in September from 10,000 tonnes the previous month.
--For the first nine months of this year there was a global surplus of 108,900 tonnes compared with a deficit of 37,500 tonnes in the same period last year.
Courtesy: Kedia Commodities