MCX Nickel under long liquidation; Support seen at 1243.2
Commodity Online | September 12 2019
UPDATED 10:00:38 IST

MCX Mentha Oil likely to move in a range of 1258-1289.6

MCX Aluminium may trade between 138.1-140.1 levels

NCDEX Chana under long liquidation; Resistance seen at 4001

MCX Nickel likely to move in a range of 1205.6-1243

MCX Cotton under short covering; Support seen at 19580

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 5% to settled at 11611 while prices down 18.4 rupees.

Now MCX Nickel is getting support at 1243.2 and below same could see a test of 1231 levels, and resistance is now likely to be seen at 1276.2, a move above could see prices testing 1297.

Nickel on MCX settled down 1.44% at 1255.4 on profit booking after prices remained supported after top supplier Indonesia said it would ban ore exports next year.

The premium for cash metal over the three-month contract rose back towards ten-year highs above $100 reached in late August, pointing to tighter nearby supply. On-warrant nickel stocks fell to 83,346 tonnes, down from around 250,000 tonnes at the start of 2018 and the lowest since 2011.

One entity holds between 80% and 89% of warrants.  Nickel miners in the Philippines are likely to ramp up ore output by next year, but their production capacity is limited, a local industry lobby group said.The Philippines' mining watchdog meanwhile recommended lifting the suspension of a small-sized nickel miner. US job openings declined in July to a five-month low, signalling a pause in demand for workers ahead of a cooling in August payrolls growth that indicates the labour market may be gradually losing momentum.

The number of positions waiting to be filled fell by 31,000 to 7.22 million, according to the Labour Department’s Job Openings and Labour Turnover Survey (JOLTS). The quits rate rose to 2.4%, the highest since April 2001, suggesting workers remain confident about their ability to find a job. Data showed that China's consumer price index (CPI), a main gauge of inflation, rose 2.8% year on year in August, unchanged from that in July.

Trading Ideas:
--Nickel trading range for the day is 1231-1297.
--Nickel dropped on profit booking after prices remained supported after top supplier Indonesia said it would ban ore exports next year.
--The premium for cash metal over the three-month contract rose back towards ten-year highs above $100 reached in late August, pointing to tighter nearby supply.
--On-warrant nickel stocks fell to 83,346 tonnes, down from around 250,000 tonnes at the start of 2018 and the lowest since 2011.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 3.73 9500.00
Coconut Oil 1.5 17800.00
Arecanut 30 22500.00
Sugar 453 3412.00

More