Technically Nickel market is getting support at 895.3 and below same could see a test of 884.2 level, And resistance is now likely to be seen at 917.2, a move above could see prices testing 928.
Nickel on MCX settled at 906.40 recovered from the day's low while prices hit a one-month low on Thursday, as investors worried about Chinese growth and higher U.S. interest rates. As macroeconomic concerns continued to bedevil the industrial metals sector, even though many of the metals showed signs of supply tightness.
Generally, the base metals complex is under pressure from outside influences, such as the Fed comments, which were pretty hawkish referring to the U.S. central bank.
Federal Reserve policymakers are largely united on the need to raise borrowing costs further, minutes from their September policy meeting showed, while Chinese Premier Li Keqiang said China's economy faced increasing downward pressure, ahead of GDP data due on Friday.
Last night the US dollar index traded at a week-high on Thursday as US Treasury yields traded near multiyear highs, after minutes from the Fed's September meeting showed that Fed policymakers remained largely united on further raising interest rates.
That came despite US President Donald Trump's view that interest rate hikes have already gone too far. LME base metals ended in negative territory across the board on Thursday. Lead led the decreases with a loss of 1.7%.
Copper dropped 1.4%, aluminium slid 0.77%, tin and nickel lost some 0.5% and zinc edged down 0.04%. While from the data points New applications for US unemployment benefits dropped last week and the number of Americans on jobless rolls fell back to levels last seen in 1973, suggesting a further tightening in labour market conditions.
--Nickel trading range for the day is 884.2-928.
--Nickel prices seen pressure as supply grew and as downstream consumption appeared to weaken.
--The global supply gap in nickel is likely to narrow in 2019, as output expands 10% to drive annual output to 2.46 million mt.
--Consumption of primary nickel would grow from the stainless steel and battery sectors.
Courtesy: Kedia Commodities