MCX Nickel likely to move in a range of 987.4-1029.8
Commodity Online | July 22 2020
UPDATED 10:30:21 IST

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MCX Nickel likely to move in a range of 1040.5-1072.9

Technically Nickel market is under short covering as market has witnessed drop in open interest by 5.89% to settled at 1007 while prices up 17.5 rupees.

Now MCX Nickel is getting support at 1000.6 and below same could see a test of 987.4 levels, and resistance is now likely to be seen at 1021.8, a move above could see prices testing 1029.8.

Nickel yesterday settled up by 1.76% at 1013.9 as investor sentiment was supported by a slew of positive news on the coronavirus vaccine front.

The global nickel market surplus widened to 9,000 tonnes in May from an overhang of 5,100 tonnes the previous month, the International Nickel Study Group (INSG) said.

For the first five months of this year, there was a global surplus of 57,300 tonnes compared with a deficit of 31,600 tonnes in the same period of 2019, Lisbon-based INSG added.

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.

In comparison, in January-June last year, Indonesia produced 517,261 tonnes of ferronickel and 364,451 tonnes of NPI, according to ministry website.

Indonesia exported 517,077 tonnes of ferronickel and 136,192 tonnes of NPI in the first half this year, he added, while around 177,462 tonnes of ferronickel and 175,700 tonnes of NPI were sold to domestic industries.

Trading Ideas:
--Nickel trading range for the day is 987.4-1029.8.
--Nickel prices gained as investor sentiment was supported by a slew of positive news on the coronavirus vaccine front.
--Major nickel miner Indonesia produced 666,696 tonnes of ferronickel in January-June period.
--The global nickel market surplus widened to 9,000 tonnes in May from an overhang of 5,100 tonnes the previous month.

Courtesy: Kedia Commodities