MCX Nickel likely to move in a range of 965.7-989.9
Commodity Online | July 03 2020
UPDATED 10:30:33 IST

MCX Mentha Oil likely to move in a range of 923.9-950.5

MCX Aluminium may trade between 139.8-142.6 levels

MCX Nickel likely to move in a range of 1028.6-1057

MCX Zinc under fresh buying; Support seen at 182.6

MCX Copper under long liquidation; Resistance seen at 507.1

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 1.58% to settled at 1124 while prices down 4.3 rupees.

Now MCX Nickel is getting support at 971 and below same could see a test of 965.7 levels, and resistance is now likely to be seen at 983.1, a move above could see prices testing 989.9.

Nickel yesterday settled down by 0.44% at 976.2 on profit booking and Rupee firmness after seen supported earlier as investors cheered signs the global economy was emerging from its coronavirus hibernation although trade is likely to be choppy on fresh concerns about Hong Kong.

A private survey showed Chinese manufacturing activity in June growing more than expected, with the Caixin/Markit manufacturing Purchasing Manager’s Index (PMI) coming in at 51.2 last month.

The global nickel market surplus narrowed to 8,800 tonnes in April from a downwardly revised 10,900 tonnes the previous month, data from the International Nickel Study Group (INSG) showed.

For the first four months of this year, there was a global surplus of 53,900 tonnes compared with a deficit of 23,500 tonnes in the same period of 2019, Lisbon-based INSG added.

The nickel market was in surplus during January to April 2020 with production exceeding apparent demand by 14.4 kt. In the whole of 2019, the calculated deficit was 17.9 kt.

Reported stocks held in the LME at the end of April 2020 were 77.4 kt higher than at the end of the previous year.Refined production in January to April 2020 totalled 711 kt and demand was 697 kt. Mine production during January to April was 688.7 kt, 74 kt below the comparable 2019 total.

Trading Ideas:
--Nickel trading range for the day is 965.7-989.9.
--Nickel dropped on profit booking and Rupee firmness after seen supported earlier as investors cheered signs the global economy was emerging.
--The global nickel market surplus narrowed to 8,800 tonnes in April from a downwardly revised 10,900 tonnes the previous month.
--A private survey showed Chinese manufacturing activity in June growing more than expected.

Courtesy: Kedia Commodities