Technically Nickel market is under fresh selling and getting support at 880.8 and below same could see a test of 869.2 level, And resistance is now likely to be seen at 907.1, a move above could see prices testing 921.8.
Nickel on MCX settled down 1.59% at 892.30 tracking weakness from Nickel’s three-month price on the London Metal Exchange fell by more than 3% at the close of trading on Thursday March 21, with risk-averse United States investment prompting a sharp sell-off across the complex while participants question details of the recent US Federal Reserve policy meeting.
Also pressure seen as the US dollar rallied after prices seen supported by bolstered by substantial decline in LME nickel inventories.Prices also seen supported from Japanese trading house Sumitomo Corp announcing that it was forced to shut its Ambatovy nickel plant in Madagascar for about two weeks in early February and could miss its revised annual production target.
LME nickel stocks fell to their lowest since June 2013, LME data showed on Wednesday. Inventories in China, however, are more plentiful.China produced 12,100 mt of refined nickel in January, up 1.44% from a year earlier.
Compared to December, output of refined nickel in January lost 32.05% as the rush to meet annual production and sales targets boosted December’s output and as existing inventories, the Lunar New Year holiday and a seasonal lull prompted producers to curtail production in January.
China’s output of refined nickel is expected to rebound by some 10% on the month to stand at 13,300 mt in February. In January, NPI output in China climbed 2.68% from a month earlier to stand at 42,600 mt in Ni content, up 15.33% on a yearly basis.
--Nickel trading range for the day is 869.2-921.8.
--Nickel dropped as the as the US dollar rallied after prices gained bolstered by substantial decline in LME nickel inventories.
--LME nickel stocks fell to their lowest since June 2013, LME data showed on Wednesday. Inventories in China, however, are more plentiful.
--China produced 12,100 mt of refined nickel in January, up 1.44% from a year earlier.
Courtesy: Kedia Commodities