MCX Nickel market rise on short coveting; Resistance seen at 655.9
Commodity Online | September 19 2016
UPDATED 15:10:48 IST

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

Nickel on MCX settled up 0.42% at 651.6 on short covering, prices dropped by nearly six percent on weekly basis amid fading threat to Philippine mine supply. Still, Russian mining giant Norilsk Nickel said it expected nickel prices to rise to about $10,000 a tonne by year-end and to flatten out around that level through 2017. LME nickel was set to be the biggest loser among base metals, on track for a near 7 percent weekly loss, its biggest since July 2015.

The results of a mine audit, expected last week, have been pushed back to Sept. 22. The global market deficit in nickel narrowed to 5,200 tonnes in July from a revised deficit of 12,100 tonnes the month before, taking the shortfall so far this year to 42,500 tonnes, data from the International Nickel Study Group showed. China’s nickel ore imports from the Philippines are expected to fall by 22-25 per cent in 2016.

The Philippines began environmental crackdowns on local nickel mines about two months ago. The review work has been completed, but the final result has yet to be released. Gina Lopez, head of the country’s Department of Environment and Natural Resources (DENR) said Sep. 5 that more mines will face shutdowns, including large ones.

China’s nickel ore imports from the Philippines to tumble to 25.5-26.5 million tonnes in 2016. Technically market is under short covering as market has witnessed drop in open interest by -4.04% to settled at 25254 while prices up 2.7 rupee, now Nickel is getting support at 645 and below same could see a test of 638.3 level, and resistance is now likely to be seen at 655.9, a move above could see prices testing 660.1.

Trading Ideas:
--Nickel trading range for the day is 638.3-660.1.
--Nickel ended with small gains on short covering, prices dropped by nearly six percent on weekly basis amid fading threat to Philippine mine supply.
--The results of a mine audit, have been pushed back to Sept. 22.
--Russian mining giant Norilsk Nickel said it expected nickel prices to rise to about $10,000 a tonne by year-end.

Courtesy: Kedia Commodities