Technically Nickel market is under short covering as market has witnessed drop in open interest by 0.3% to settled at 1671 while prices up 0.1 rupees.
Now MCX Nickel is getting support at 1306.9 and below same could see a test of 1296 levels, and resistance is now likely to be seen at 1336.2, a move above could see prices testing 1354.6.
Nickel yesterday settled up by 0.01% at 1317.9 as prospects for rebounding growth as the global vaccine rollout gathers pace underpinned a rally in the metals market.
Global demand for nickel is expected to increase to 2.67 million tonnes in 2021 from 2.39 million tonnes in 2020, the International Nickel Study Group said.
Global output of nickel is expected to rise to 2.72 million tonnes from 2.49 million tonnes, the Lisbon-based group said, adding the implicit market balance is a surplus of 45,000 tonnes in 2021.
Indonesian state miner Aneka Tambang (Antam) said its nickel ore output rose more than four-fold in the first three months of 2021 compared to the same period a year ago.
Antam's nickel ore output stood at 2.64 million wet metric tonnes (WMT) in the first quarter, up from 629,000 WMT in the same period in 2020, the company said in a statement.
The U.S. economy has had a steady run of good news in recent months, with job gains accelerating as businesses reopen and forecasters projecting that 2021 will see the strongest GDP growth in decades.
But the Federal Reserve has shown no sign that there has been enough progress yet to ease the support for the economy that it put in place at the onset of the pandemic.
--Nickel trading range for the day is 1296-1354.6.
--Nickel pared gains seen eralier as prospects for rebounding growth as the global vaccine rollout gathers pace underpinned a rally in the metals market.
--Global nickel demand to increase to 2.67 mln tonnes in 2021 – INSG.
--Indonesia's Antam Q1 nickel ore output up more than four – fold y/y.
Courtesy: Kedia Commodities