Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 14.3% to settled at 1151 while prices down 26.9 rupees.
Now MCX Nickel is getting support at 974.4 and below same could see a test of 961.7 levels, and resistance is now likely to be seen at 1010.8, a move above could see prices testing 1034.5.
Nickel yesterday settled down by 2.65% at 987 after U.S. State Department orders China to close consulate in Houston as Beijing vows retaliation. Positive news in the hunt for a coronavirus vaccine also buoyed market sentiment again.
Investor sentiment was bolstered after European Union leaders reached a deal on a 750 billion euro ($862 billion) recovery fund to help the region recover from the coronavirus crisis.
Major nickel miner Indonesia produced 666,696 tonnes of ferronickel in January-June period, Yunus Saefulhak, director of mineral at Energy and Mineral Resources Ministry said.
Indonesia also produced 418,955 tonnes of nickel pig iron (NPI) in January-June, Saefulhak said. Both ferronickel and NPI are products made from nickel ore that are used in making stainless steel.
China’s refined nickel output increased 7.32%, or 1,030 mt, from May and 20.03% from a year earlier to 15,100 mt in June. Output at Gansu smelters rose by nearly 1,000 mt on the month, recovering to the level in March-April, and there is no adjustments to annual output targets.
Output at Xinjiang smelters rose slightly month on month in June, while smelters in Jilin held their production flat. Output at Tianjin smelters has gradually recovered, rising to 260 mt in June.
--Nickel trading range for the day is 961.7-1034.5.
--Nickel prices dropped after U.S. State Department orders China to close consulate in Houston as Beijing vows retaliation.
--Major nickel miner Indonesia produced 666,696 tonnes of ferronickel in January-June period.
--China’s refined nickel output increased 7.32%, or 1,030 mt, from May and 20.03% from a year earlier to 15,100 mt in June.
Courtesy: Kedia Commodities