MCX Nickel likely to move in a range of 950.7-1013.7
Commodity Online | December 06 2019
UPDATED 10:00:20 IST

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MCX Nickel likely to move in a range of 1064.7-1102.5

Technically Nickel market is under short covering as market has witnessed drop in open interest by 10.08% to settled at 1525 while prices up 13.9 rupees.

Now MCX Nickel is getting support at 967.1 and below same could see a test of 950.7 levels, and resistance is now likely to be seen at 998.6, a move above could see prices testing 1013.7.

Nickel on MCX settled up 1.43% at 983.6 on short covering after prices dropped amid an oversupply of stainless steel in China. In last some session, pressure also seen pressured by intensified fears of US-China trade war and stainless steel oversupply.

Falling nickel prices drove more stainless steel producers in China to cut production or suspend for maintenance. Losses have spread across the industrial chain, with muted trades of nickel pig iron and nickel ore.  Consumption of stainless steel remained weak.

A survey showed that manufacturing activities across nickel downstream sectors in China, including stainless steel, galvanising, alloy, and battery, stayed in contraction for the eighth consecutive month in November. On the data front, US private payrolls increased by just 67,000 last month, according to an estimate from ADP and Moody’s Analytics.

The count was well below the 150,000 consensus from economists surveyed by Dow Jones and the lowest month since May. US services sector activity slowed more than expected in November amid lingering concerns about trade tensions and worker shortages, which could revive fears about the economy’s health. Activity in China’s services sector, which accounts for more than half of China’s economy, accelerated to a seven-month high in November.

Trading Ideas:
--Nickel trading range for the day is 950.7-1013.7.
--Nickel prices gained on short covering after prices dropped amid an oversupply of stainless steel in China.
--In last some session, pressure also seen pressured by intensified fears of US-China trade war and stainless steel oversupply.
--US services sector activity slowed more than expected in November amid lingering concerns about trade tensions and worker shortages.

Courtesy: Kedia Commodities