Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 6.78% to settled at 14102 while prices down 13.4 rupees.
Now MCX Nickel is getting support at 880.8 and below same could see a test of 874.2 level, And resistance is now likely to be seen at 898.5, a move above could see prices testing 909.6.
Nickel on MCX settled down 1.49% at 887.40 tracking benchmark nickel on the London Metal Exchange closed down 1.5 percent at $12,230 a tonne after hitting $12,165, its weakest since Dec. 29 last year as the US dollar stayed at highs and trade war worries remained, LME nickel declined to an eight-month low and the SHFE 1811 fell to the lowest in five months overnight.
Nickel hit an eight-month low and zinc slipped to its lowest in three weeks on Tuesday as speculators added bearish positions against the backdrop of persistent international trade concerns and a slide in steel prices.
Concerns still prevails in the market as US President Donald Trump warned last week that he was ready to levy additional tariffs on practically all Chinese imports, while China is prepared to ask the World Trade Organization next week for permission to impose sanctions on the United States.
The U.S. dollar rebounded from losses and was trading 0.1 percent firmer, making dollar-denominated assets such as commodities more expensive for buyers using other currencies.
Last night the US dollar fell against the Canadian dollar, which was buoyed by a resumed North American Free Trade Agreement (NAFTA) trade negotiations between the two counties Tuesday. Now Market participants should monitor data including the US PPI for August, and its EIA weekly crude inventory data.
--Nickel trading range for the day is 874.2-909.6.
--Nickel dropped as an intensifying trade war between Washington and Beijing raised concerns over demand for industrial metals in top consumer China.
--China will respond if the United States takes any new steps on trade, after U.S. President Donald Trump warned he was ready to slap tariffs.
--China’s trade surplus with US widened to a record in August even as its export growth slowed slightly, an outcome that could push Trump to turn up the heat on Beijing.
Courtesy: Kedia Commodities