MCX Nickel likely to move in a range of 921-945
Commodity Online | May 27 2020
UPDATED 10:30:58 IST

MCX Mentha Oil likely to move in a range of 971.1-996.9

MCX Aluminium may trade between 137-139.2 levels

MCX Nickel likely to move in a range of 957.6-994.2

MCX Zinc under short covering; Resistance seen at 165

MCX Copper under fresh buying; Support seen at 462.2

Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 17.8% to settled at 1072 while prices up 7.8 rupees.

Now MCX Nickel is getting support at 928.3 and below same could see a test of 921 levels, and resistance is now likely to be seen at 940.3, a move above could see prices testing 945.

Nickel yesterday settled up by 0.84% at 935.5 as investors looked to stimulus and a reopening world economy and investors cheered the Japan’s lifting the state of emergency.

The US dollar edged higher on concerns over rising tensions between the US and China over Beijing’s plans to impose security laws on Hong Kong and the possibility of sanctions from Washington.

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 German economy posted its largest decline in output since the financial crisis in the first quarter and entered a recession due to the coronavirus pandemic and the lockdown implemented in mid-March, the German statistics office Destatis said, confirming a preliminary estimate.

German Ifo business climate index came in at 79.5 in May, firmer than last month's 74.2 while beating the consensus estimates pointing to a reading of 78.3. Meanwhile, the current economic assessment arrived at 78.9 points in the reported month as compared to last month's 79.4 and 80.0 anticipated.

Trading Ideas:
--Nickel trading range for the day is 921-945.
--Nickel prices gained as investors looked to stimulus and a reopening world economy and investors cheered the Japan’s lifting the state of emergency.
--The Philippines said its nickel ore output in the first quarter shrank 27% from a year earlier to 28,006 tonnes.
--The German economy posted its largest decline in output since the financial crisis in the first quarter and entered a recession.

Courtesy: Kedia Commodities