Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 5.5% to settled at 1285 while prices down 1.9 rupees.
Now MCX Nickel is getting support at 951.6 and below same could see a test of 946.5 levels, and resistance is now likely to be seen at 960.3, a move above could see prices testing 963.9.
Nickel yesterday settled down by 0.2% at 956.6 as investors remained concerned about a rising number of coronavirus cases in some parts of the world.
Nickel premiums in all regions traded flat, with demand for the metal being weak in all global markets. Nickel ore inventories across all Chinese ports fell after two consecutive weeks of gains, decreasing 100,000 wmt from last Friday June 19 to 7.99 million wmt as of Wednesday June 24, showed data.
Data also showed that nickel ore stocks across seven major Chinese ports fell 100,000 wmt during the same period to 6.95 million wmt.
Inventories of refined nickel in the Shanghai bonded areas extended their increase as import losses stayed at high levels with the exchange rate of the US dollar edging lower against the Chinese yuan.
Data showed that the bonded stocks of refined nickel stood at 16,000 mt as of June 24, up 400 mt from last Friday, with nickel cathode taking up all the increase.
World Bureau of Metal Statistics in latest report said that nickel market was in surplus during January to March 2020 with production exceeding apparent demand by 6.6 kt.
In the whole of 2019, the calculated deficit was 17.9 kt. Reported stocks held in the LME at the end of March 2020 were 75.5 kt higher than at the end of the previous year.
--Nickel trading range for the day is 946.5-963.9.
--Nickel prices dropped as investors remained concerned about a rising number of coronavirus cases in some parts of the world.
--Negative arbitrage between the London Metal Exchange and Shanghai Futures Exchange kept China trade subdued.
--Inventories of refined nickel in the Shanghai bonded areas extended their increase as import losses stayed at high levels.
Courtesy: Kedia Commodities