MCX Nickel market rise on short covering; Support seen at 679.8
Commodity Online | September 21 2016
UPDATED 11:29:37 IST

MCX Mentha Oil likely to move in a range of 944-965.6

MCX Aluminium may trade between 142.7-145.5 levels

MCX Nickel likely to move in a range of 1043.9-1081.7

MCX Copper under fresh buying; Support seen at 520

MCX Zinc under long liquidation; Resistance seen at 192.3

Nickel on MCX settled up 1.25% at 687.20 tracking firmness from LME nickel which gained 1.6 percent to close at $10,310 a tonne, adding to Monday's 4.4 percent gain, on prospects that more Philippine mines may be suspended when the results of an environmental audit are announced this week.

China has boosted its imports of nickel ore, with stockpiles at ports standing at more than 1.5 million tonnes, the highest since last October. LME nickel also saw modest profit taking after prices surged by 4.4 percent, the biggest daily gain since July on prospects that more Philippine mines may be suspended when the results of an environmental audit are announced this week. Prices slipped half a percent to $10,095 a tonne. Sentiments improved as speculation are high that the Philippines could suspend at least 10 more mines under an environmental crackdown, the minister in charge of mining said, in a move that threatens to halt the operations of half the mines in the world's top supplier of nickel ore.

Also traders are eyeing on the U.S. dollar which slipped amid expectations of no rate change from the Fed. While the overwhelming consensus is for the Fed to hold rates steady at the conclusion of its policy meeting on Wednesday, some market players expect it to drop a clearer hint that it is ready to raise rates by December. Technically market is under short covering as market has witnessed drop in open interest by -16.79% to settled at 14251 while prices up 8.5 rupee, now Nickel is getting support at 679.8 and below same could see a test of 672.5 level, and resistance is now likely to be seen at 691.6, a move above could see prices testing 696.1.

Trading Ideas:
--Nickel trading range for the day is 672.5-696.1.
--Nickel gained on prospects that more Philippine mines may be suspended when the results of an environmental audit are announced this week.
--Philippines shutters sites for failing to meet environmental standards, threatening supplies from the nation.
--China has boosted its imports of nickel ore, with stockpiles at ports standing at more than 1.5 million tonnes, the highest since last October.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 10300.00
Coconut Oil 0.1 18100.00
Arecanut 4 36588.00
Sugar 30 3550.00

More