Technically Nickel market is getting support at 921.8 and below same could see a test of 907.3 level, And resistance is now likely to be seen at 946.4, a move above could see prices testing 956.5.
Nickel on MCX settled down 0.75% at 936.20 tracking weakness from Global Base metals prices fell sharply in Shanghai and London in early Asian trade, tracking a broad sell-off on equity markets as a gloomy macro-economic outlook raised concerns over demand growth.
Global stocks slumped and Chinese share indexes hit multi-year lows after Wall Street suffered its worst drubbing in eight months. Investors have been spooked by the prospect of rising U.S. interest rates, a spike in U.S. bond yields and uncertainty over trade and the global economic outlook.
Last night the dollar fell to low in two weeks as traders pared greenback holdings on lower US Treasury yields and further losses on Wall Street. A weaker-than-forecast rise in US consumer prices in September also reduced bets for a faster pace of interest rate increases by the Federal Reserve, further eroding the dollar's appeal.
The euro climbed to a week-high against the dollar as minutes of the ECB's policy meeting last month suggested that policy-makers have not abandoned their plan to end the ECB's 2.6 trillion-euro bond-purchase programme this year.
The number of Americans filing for unemployment benefits unexpectedly rose last week but remained near a 49-year low, and the increase appeared unlikely to refuted the view that the US labour market remains strong.
Initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 214,000 for the week ended October 6, the Labor Department said on Thursday. Now a day ahead some data to monitor today include Germany’s consumer prices in September, and US import prices in September and consumer confidence in October.
--Nickel trading range for the day is 907.3-956.5.
--Nickel dropped as investors feared an escalating U.S. trade war with China and risks from a recent climb in interest rates.
--The International Monetary Fund also reduced its global economic growth forecasts for 2018 and 2019 to 3.7 percent from a July forecast of 3.9 percent for both years.
--US producer prices increased 0.2% in September, reversing an unexpected decline of 0.1% in August.
Courtesy: Kedia Commodities