Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 41.94% to settled at 3323 while prices down 21.5 rupees.
Now MCX Nickel is getting support at 871.2 and below same could see a test of 862.7 level, And resistance is now likely to be seen at 893, a move above could see prices testing 906.3.
Nickel on MCX settled down 2.39% at 879.8 amid eased optimism around the US interest rate cut and China-US trade talks. Rising tensions in the Middle East also grew worries in the market and depressed momentum in prices.
The global nickel market deficit narrowed to 9,400 tonnes in April from a revised shortfall of 14,200 tonnes in the previous month, the International Nickel Study Group (INSG) said. Nickel ore inventories across all Chinese ports increased by some 160,000 wmt from a week ago to 12.71 million wmt as of Friday June 21, data showed.
Stocks in metal content grew 1,000 mt this week to stand at 107,000 mt. Stocks across seven major Chinese ports expanded 110,000 wmt to stand at 10.47 million wmt. Transactions of stainless steel picked up a bit in the recent three days to in Wuxi of Jiangsu province as a rebound in nickel prices bolstered prices of stainless steel and eased pessimism in the market, an survey showed.
However, the higher price failed to spur large-scale stockpiling across downstream consumers. Demand from major downstream sectors will continue to determine prices of stainless steel in the short term. The number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to underlying market strength despite a sharp slowdown in job growth in May.
--Nickel trading range for the day is 862.7-906.3.
--Nickel prices dropped amid eased optimism around the US interest rate cut and China-US trade talks.
--Rising tensions in the Middle East also grew worries in the market and depressed momentum in prices.
--The global nickel market deficit narrowed to 9,400 tonnes in April from a revised shortfall of 14,200 tonnes in the previous month.
Courtesy: Kedia Commodities