MCX Nickel likely to move in a range of 979.7-1028.5
Commodity Online | July 10 2020
UPDATED 10:30:38 IST

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MCX Nickel likely to move in a range of 1023.1-1083.9

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Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 25.23% to settled at 1212 while prices down 17 rupees.

Now MCX Nickel is getting support at 988.8 and below same could see a test of 979.7 levels, and resistance is now likely to be seen at 1013.2, a move above could see prices testing 1028.5.

Nickel yesterday settled down by 1.68% at 997.8 as a surge in coronavirus cases in U.S. raised fears of another lockdown and triggered concerns about near term demand outlook. The China’s economic recovery is gathering pace and by retail investor enthusiasm.

But, the guidance rate continued to be fixed weaker than forecasts, as it was in the previous two sessions, raising questions among traders over whether the central bank is comfortable with the recent sharp appreciation while exports remain weak.

The US dollar edged lower as investors weighed hopes for a quick economic recovery against concerns about a resurgence in the coronavirus pandemic, particularly in the US. China’s NPI output rose 0.81% from May to 44,600 mt Ni in June, but was 9.85% lower than a year earlier.

This included 37,500 mt Ni of high-grade NPI, up 1.44% on the month, and 7,100 mt Ni of low-grade NPI, down 2.43% month on month. The commissioning of some new high-grade NPI capacities contributed to the slight increase in NPI output in June.

There were some smelters in Inner Mongolia that have suspended production or switched to other alloys, but the decline in output could be offset by the release of new capacities. Some of the NPI plants will recover from overhauls in Q3, which will limit the decline in NPI output in Q3.

Trading Ideas:
--Nickel trading range for the day is 979.7-1028.5.
--Nickel dropped as a surge in coronavirus cases in U.S. raised fears of another lockdown and triggered concerns about near term demand outlook.
--Investors weighed hopes for a quick economic recovery against concerns about a resurgence in the coronavirus pandemic, particularly in the US.
--China’s NPI output rose 0.81% from May to 44,600 mt Ni in June, but was 9.85% lower than a year earlier.

Courtesy: Kedia Commodities