Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 31.33% to settled at 822 while prices down 8.8 rupees.
Now MCX Nickel is getting support at 928 and below same could see a test of 923.8 level, and resistance is now likely to be seen at 935.7, a move above could see prices testing 939.2.
Nickel on MCX settled down 0.94% at 932.30 continuing to trade with weakness as traders are building up their short positions as a spike in new cases from the coronavirus epidemic in South Korea refuelled investor anxiety.
Frequent stock inflows of LME-registered nickel continue to find their way into LME warehouses, pressuring prices lower, with spot appetite in the physical market an ongoing question against price volatility. Total LME on-warrant nickel stocks now sit at 143,016 tonnes, up from just 43,700 tonnes at the start of December 2019.
Base metals cruised mostly lower on Friday, as a spike in new cases from the coronavirus epidemic in South Korea refuelled investor anxiety. South Korea reported 52 new cases of coronavirus on Friday, taking up the national total to 156, making it the worst-infected country outside of China. That renewed concern is spreading in South Korea, Singapore and other Asian economies. Mounting risk aversion boosted demand for safe-havens, with US gold futures hitting seven-year highs.
Commodity markets’ main source of influence continues to be the news flow related to the Covid-19 virus and the potential risk of it spreading further across Asia and beyond. China, already reeling from the economic and human impact, is struggling to return to work. The tentative recovery in key commodities such as base metals and crude oil during the past couple of weeks was amongst other things driven by the narrative that the economic impact would primarily be a Q1 event.
--Nickel trading range for the day is 923.5-937.5.
--Nickel continues to trade with weakness as traders are building up their short positions on virus concern.
--New cases from the coronavirus epidemic in South Korea refuelled investor anxiety.
--Frequent stock inflows of LME-registered nickel continue to find their way into LME warehouses.
Courtesy: Kedia Commodities