Technically Nickel market is getting support at 745.4 and below same could see a test of 729.9 level, And resistance is now likely to be seen at 770.2, a move above could see prices testing 779.5.
Nickel on MCX settled up 1% at 760.80 benefiting from a second straight day of firmer Chinese steel prices. Prices were getting support as the nickel industry in Cuba shut down as Irma approached late last week. The state-owned Ernesto Che Guevara was closed, and a joint venture with Canadian miner Sherritt International Corporation was operating at minimum capacity and was set to close on Thursday, Reuters reported.
Chinese and London Metal Exchange nickel prices have come into some resistance amid a batch of profit taking and concerns over future Chinese demand. Last week, Shanghai nickel futures climbed to a nine month high, and that caused demand to evaporate. At the same time, spot prices rallied and their aggressive ascent resulted in steel mills decreasing their purchases.
LME nickel has also run into some resistance after reaching a two-year high a few weeks ago. Nickel’s recent ascent is a result of skyrocketing demand as China has fired up steel production ahead of the expected winter crackdown on emissions.
This has benefited demand for nickel, a stainless steel component, and resulted in the nine-month and two-year peak for Shanghai and London prices, respectively. While demand changes have created the latest rally, it started a few months ago after the Philippines new acting environment minister indicated that he would be as willing to lift the country’s current mining bans.
--Nickel trading range for the day is 729.9-779.5.
--Nickel prices gained amid a wave of bargain hunters buying up on recent price dips as financial markets responded positively.
--One nickel ore mine in Northwest China suspended operations in August due to environmental protection inspections.
--Losses for Russian nickel imports showed signs of narrowing over the past trading days of the week.
Courtesy: Kedia Commodities