MCX Nickel likely to move in a range of 960.9-1004.9
Commodity Online | December 10 2019
UPDATED 10:00:22 IST

MCX Mentha Oil under fresh selling; Support seen at 1256.6

MCX Aluminium may trade between 139.3-141.3 levels

MCX Nickel likely to move in a range of 982.6-1072.6

NCDEX Chana under long liquidation; Resistance seen at 4325

MCX Cotton under long liquidation

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 2.78% to settled at 1259 while prices down 17.8 rupees.

Now MCX Nickel is getting support at 970.3 and below same could see a test of 960.9 levels, and resistance is now likely to be seen at 992.3, a move above could see prices testing 1004.9.

Nickel on MCX settled down 1.78% at 979.6 on faltering steel output from top producer China and waning impact from an Indonesian ore export ban.

China's exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. war but growth in imports may be a sign that Beijing's stimulus steps are helping to stoke demand.

The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China's policymakers could unleash more stimulus as growth in the world's second-largest economy cooled to nearly 30-year lows.Indonesia expects to have 29 nickel smelters operating by 2022, with total annual input capacity of nearly 70 million tonnes, a mining ministry official said, in a downward revision of a November projection of ore refining capacity.

Indonesia, a major exporter of nickel ore, is set to stop exports of raw nickel in January. Exports of other ore and concentrates will stop in 2022.China’s production of refined nickel extended its increase by 4.07% on the month to 14,100 mt in November, as a smelter in Gansu stepped up operations. On a year-on-year basis, the output was 4.71% lower. Maintenance at a smelter in Jilin continued last month, and production may resume in January 2020 earliest. It remains unclear when the ongoing overhaul at a smelter in Guangxi will conclude. Other nickel smelters maintained normal operation last month.

Trading Ideas:
--Nickel trading range for the day is 960.9-1004.9.
--Nickel dropped  on faltering steel output from top producer China and waning impact from an Indonesian ore export ban.
--Indonesia expects to have 29 nickel smelters operating by 2022, with total annual input capacity of nearly 70 million tonnes, a mining ministry official said.
--China’s production of refined nickel extended its increase by 4.07% on the month to 14,100 mt in November, as a smelter in Gansu stepped up operations.

Courtesy: Kedia Commodities

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