Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 26.24% to settled at 2800 while prices up 27.2 rupees.
Now MCX Nickel is getting support at 1488.9 and below same could see a test of 1469.4 levels, and resistance is now likely to be seen at 1519.5, a move above could see prices testing 1530.6.
Nickel yesterday settled up by 1.84% at 1508.3 buoyed by strong demand from stainless steel mills and electric vehicle battery makers, amid tight supply.
Supplies are under pressure this year due to disruptions at nickel mines in New Caledonia, Russia and Canada. Vale, one of the world’s largest producers, said nickel output declined in the second quarter of the year and it’s reviewing annual guidance.
Production at Vale’s northeast Ontario operation halted when unionized workers went on strike on June 1 increasing extra charges consumers pay on top of nickel prices on the London Metal Exchange, as stockpiles of the metal dwindle.
Meantime, electric-car maker Tesla Inc. struck a nickel-supply deal with BHP Group to avoid a future supply crunch.Healthy demand from stainless steel mills and electric vehicle battery makers is expected to underpin nickel prices over coming months, but rising supplies from top producer Indonesia are likely to weigh next year.
New orders for key U.S.-made capital goods increased solidly in June despite supply constraints hampering production at some factories, suggesting business spending on equipment could remain strong beyond the second quarter.Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.5% last month, the Commerce Department said.
--Nickel trading range for the day is 1469.4-1530.6.
--Nickel prices rose buoyed by strong demand from stainless steel mills and electric vehicle battery makers, amid tight supply.
--Booming stainless steel output to sustain nickel prices for months.
--Vale, one of the world’s largest producers, said nickel output declined in the second quarter of the year.
Courtesy: Kedia Commodities