Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 11.39% to settled at 1477 while prices up 0.6 rupees.
Now MCX Nickel is getting support at 1207.4 and below same could see a test of 1199.7 levels, and resistance is now likely to be seen at 1226.4, a move above could see prices testing 1237.7.
Nickel yesterday settled up by 0.05% at 1215 as the dollar fell to a four-week low, still smarting from a sharp drop in U.S.Treasury yields, and as investors increasingly bought into the Federal Reserve’s insistence it would keep an accommodative policy stance for a while longer.
The benchmark 10-year U.S. Treasury yield dipped to a one-month low of 1.528%, moving further away from March’s 1.776%, its highest in more than a year, even in the face of Thursday’s stronger-than-expected retail sales and employment data.
Euro zone inflation ramped up in March, Eurostat confirmed, with consumer prices across the bloc rising 0.9% month-on-month, driven primarily by services and energy.China's state planner said that it approved 16 fixed-asset investment projects worth a total of 45.4 billion yuan ($6.96 billion) in the first quarter of this year.
The projects are mainly in the transportation, high technology and energy sectors, Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), told reporters at a regular briefing.
The NDRC also said that China's power consumption surged 21.2% in the first quarter from a year earlier. China's state planner expects the Consumer Price Index (CPI) to grow mildly this year and remain within the official target, its spokesperson Meng Wei said.
--Nickel trading range for the day is 1203.8-1240.
--Nickel recovered to gain as Russian metals producer Nornickel has improved its 2021 production forecast slightly.
--The global nickel market surplus expanded to 6,200 tonnes in February from a downwardly revised surplus of 3,500 tonnes in the previous month.
--During the first two months of the year, the global market saw a surplus of 9,700 tonnes, down from a surplus of 29,300 tonnes in the same period of 2020.
Courtesy: Kedia Commodities