Technically Nickel market is under short covering as market has witnessed drop in open interest by 2.17% to settled at 1128 while prices up 5.2 rupees.
Now MCX Nickel is getting support at 968.5 and below same could see a test of 961 levels, and resistance is now likely to be seen at 980.6, a move above could see prices testing 985.2.
Nickel yesterday settled up by 0.54% at 975.9 as investors continued to assess the prospects of economic recovery from the coronavirus pandemic.
Some stainless steel mills plan for maintenance as the slack season sets in, rigid demand from most other stainless steel plants remains supportive of nickel prices amid a supply glut in the domestic market.
China’s central bank said that the country’s economic growth faces challenges from the global coronavirus pandemic, despite signs of improvement amid business re-openings.
The People’s Bank of China (PBOC) said in a statement it would continue to guide lending rates lower by exploiting the full potential of reforms, and would strengthen financial support to small- and medium-sized enterprises and private firms.
The PBOC made the statement after its monetary policy committee held a seasonal meeting on June 24, it said. The US consumer spending, which accounts for more than two-thirds of US economic activity, grew 8.2% in May, the Commerce Department said.
That was the largest increase since the government started tracking the series in 1959. The reopening of many businesses after being shuttered in mid-March bolstered consumers spending in May.
Consumer spending slumped by a historic 12.6% in April. Inflation remained weak in May, with food prices moderating and the cost of energy goods and services falling for a fifth straight month.
--Nickel trading range for the day is 961-985.2.
--Nickel prices remained supported as investors continued to assess the prospects of economic recovery from the coronavirus pandemic.
--Some stainless steel mills plan for maintenance as the slack season sets in, rigid demand from most other stainless steel plants remains supportive.
--China’s central bank said that the country’s economic growth faces challenges, despite signs of improvement amid business re-openings.
Courtesy: Kedia Commodities