MCX Nickel likely to move in a range of 913-945.6
Commodity Online | May 26 2020
UPDATED 10:30:04 IST

NCDEX Chana under long liquidation; Resistance seen at 5001

MCX Cotton under fresh selling; Support seen at 19920

NCDEX Jeera under long liquidation; Resistance seen at 13775

NCDEX Turmeric under long liquidation; Support seen at 5494

NCDEX Mustard Seed under short covering; Resistance seen at 6083

Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 20.21% to settled at 910 while prices down 5.8 rupees.

Now MCX Nickel is getting support at 920.3 and below same could see a test of 913 levels, and resistance is now likely to be seen at 936.6, a move above could see prices testing 945.6.

Nickel yesterday settled down by 0.62% at 927.7 with traders noting a wide-spread sell-off from both Chinese and overseas investors.

Investors feared the prospect of more protests in Hong Kong over tough new security laws and threatened U.S. sanctions.Concern about demand in top base metals consumer China also crimped prices after China failed to set an annual growth target for the first time.

The global nickel market surplus narrowed to 14,000 tonnes in March from an upwardly revised 15,700 tonnes the previous month, the International Nickel Study Group (INSG) said.

For the first three months of this year, there was a global surplus of 45,700 tonnes compared with a deficit of 16,200 tonnes in the same period of 2019, Lisbon-based INSG added.

The Philippines said its nickel ore output in the first quarter shrank 27% from a year earlier to 28,006 tonnes, as more than half of its 29 operating nickel mines reported zero production.

Just 11 of the Southeast Asian nation's nickel mines reported output in the March quarter, while 18 were either under care and maintenance programmes or did not operate due to unfavourable weather, the Mines and Geosciences Bureau said.

The Philippines is poised to become the top supplier of nickel ore this year to China, where it is processed for use in making nickel pig iron, a key ingredient of stainless steel, after Indonesia stopped ore exports beginning January.

Trading Ideas:
--Nickel trading range for the day is 913-945.6.
--Nickel prices dropped with traders noting a wide-spread sell-off from both Chinese and overseas investors.
--The global nickel market surplus narrowed to 14,000 tonnes in March from an upwardly revised 15,700 tonnes the previous month.
--The Philippines said its nickel ore output in the first quarter shrank 27% from a year earlier to 28,006 tonnes.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Coconut Oil 2.5 20500.00
Sugar 20 3430.00
Rubber 0.9 15600.00
Jeera 5 11000.00

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