Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 0.39% to settled at 1024 while prices up 13.7 rupees.
Now MCX Nickel is getting support at 942.1 and below same could see a test of 926.8 levels, and resistance is now likely to be seen at 965.8, a move above could see prices testing 974.2.
Nickel yesterday settled up by 1.45% at 957.5 on ongoing efforts nationwide to reopen for business following economically-damaging lockdowns.
Investor hopes the economy may mount a quicker recovery were given a boost as all U.S. States partially reopened.Prices seen support on market expectations that China, could announce more stimulus measures at a parliamentary meeting this week.
Optimism about a potential vaccine for the coronavirus and hopes for economic recovery as more countries reopen their economies also bolstered market sentiment.
Trade relations between the United States and China have turned sour after Washington expressed disappointment over the way China handled the coronavirus outbreak, raising fears that the countries could escalate their trade conflict and hurt economic growth further.
Investors also had to confront data showing a leap in UK jobless claims to their highest level in 24 years and a forecast that Europe's largest economy, Germany, would shrink by at least 10% this year.
Data showed that China's industrial production rebounded in April, boosted by the government's steps to promote work resumption, but investment and consumption continued to fall from a year earlier.
China’s industrial output rose 3.9% in April year on year, improving from a 1.1% fall in March, the National Bureau of Statistics said. Fixed-asset investment fell 10.3% in the January-April period, compared to a 16.1% drop in the first quarter.
--Nickel trading range for the day is 926.8-974.2.
--Nickel gained ongoing efforts nationwide to reopen for business following economically-damaging lockdowns.
--Investor hopes the economy may mount a quicker recovery were given a boost as all U.S. States partially reopened.
--Nickel ore inventories across all Chinese ports continued to fall this week, decreasing 430,000 wmt from May 8 to 8.24 million wmt.
Courtesy: Kedia Commodities