Technically Nickel market is under short covering as market has witnessed drop in open interest by 0.55% to settled at 15044 while prices up 11.2 rupees.
Now MCX Nickel is getting support at 729.4 and below same could see a test of 719.1 level, And resistance is now likely to be seen at 745.2, a move above could see prices testing 750.7.
Nickel on MCX settled up 1.54% at 739.60 recovered from the day's low 724.60 as prices seen drop after China's overseas investment weakened while latter in the day Nikel prices rallied to the multi month high tracking firmness from LME Nickel which ended up 1.4 percent at $11,070 a tonne, its highest since Dec. 12.
Nickel prices rose to two-month highs on Thursday on mounting concerns about supplies after the suspension of mines in top ore producer the Philippines and its decision to cancel contracts for undeveloped mines.
The Philippines this week ordered the cancellation of 75 mineral production-sharing agreements as developing them would threaten water supplies. That came after the closure or suspension of 28 of the country's 41 mines. Meanwhile Indonesia eased a three-year ban on nickel ore exports in January.
However, market players say the rules accompanying the relaxation on using local smelter capacity to process low-grade ore is a hurdle that some firms may not be able to jump. On the data front, New residential construction in the U.S. pulled back in the month of January, according to a report released by the Commerce Department, although the report also showed a jump in building permits.
Housing starts fell by 2.6 percent to an annual rate of 1.246 million in January. The Labor Department reported a slight increase in first-time claims for U.S. unemployment benefits in the week ended February 11th. Initial jobless claims edged up to 239,000.
--Nickel trading range for the day is 719.1-750.7.
--Nickel rose to two-month highs on mounting concerns about supplies after the suspension of mines in top ore producer the Philippines.
--Nickel on the London Metal Exchange ended up 1.4 percent at $11,070 a tonne, its highest since Dec. 12.
--Stocks of nickel in LME warehouses stand at 380,000 tonnes, while those in warehouses monitored by the Shanghai total 89,000 tonnes.
Courtesy: Kedia Commodities