Technically Nickel market is under short covering as market has witnessed drop in open interest by 16.93% to settled at 9234 while prices up 4.2 rupees.
Now MCX Nickel is getting support at 862 and below same could see a test of 857 level, And resistance is now likely to be seen at 871, a move above could see prices testing 875.
Nickel on MCX settled up 0.49% at 867.1 on short covering after prices dropped amid upbeat data for new home sales in the US shored up the greenback.
The global nickel market deficit narrowed to 2,000 tonnes in February from a revised deficit of 3,700 tonnes in the month earlier, the International Nickel Study Group (INSG) said. The February deficit has also narrowed sharply from 7,200 tonnes a year earlier, according to the Lisbon-based INSG's latest monthly statistics.
A major steel mill in the east lowered its purchasing prices of high-grade ferronickel by 40 yuan/mt on the week, to 980 yuan/mtu with taxes and transportation fees included. A stainless steel producer in the south continued to suspend its procurement of high-grade ferronickel this week.
Domestic prices of spot high-grade ferronickel with 8-12% Ni stood at 970-985 yuan/mtu, down an average 32.5 yuan/mtu from a week earlier. The Commerce Department said that sales of new US single-family homes increased 4.5% to a seasonally adjusted annual rate of 692,000 units in March, the highest level since November 2017.
In the Eurozone, consumer confidence fell unexpectedly by 0.7 points in April from the March number, figures showed. The European Commission said a flash estimate showed eurozone consumer morale decreased to 7.9 this month from 7.2 in March.
--Nickel trading range for the day is 857-875.
--Nickel prices gained on short covering after prices dropped amid upbeat data for new home sales in the US shored up the greenback.
--Chile's central bank is expected to hold its benchmark interest rate at 3 percent through May of 2020.
--Traders have continued to push back predictions for the next rate rise in the world's top copper producer as economic growth has slowed.
Courtesy: Kedia Commodities