Technically MCX Nickel market is under short covering as market has witnessed drop in open interest by 2.54% to settled at 15126 while prices up 6 rupees.
Now MCX Nickel is getting support at 846 and below same could see a test of 837.5 level, And resistance is now likely to be seen at 859.8, a move above could see prices testing 865.1.
Nickel on MCX settled up 0.71% at 854.60 on the news that Chinese nickel demand to rise, Chinese nickel demand from stainless steel and battery materials producers will continue to rise in near future, although extensive investments in nickel projects will cap higher nickel prices, Fastmarkets learned from Antaike’s Nickel & Cobalt Conference in Xiamen on November 6-8.
While Operation resumption grows nickel production by 21% in Oct* - In Oct, China's nickel output gained 21% from Sep as two producers recovered from maintenance. Last night the US dollar held on to earlier gains as the Federal Reserve kept its monetary policy on hold and indicated further gradual rate hikes.
Against a basket of six rival currencies, the dollar index inched up and closed at 96.67, surpassing levels earlier in the day prior to the Fed announcement. The Fed has raised rates three times this year and is expected to hike rates again before the end of 2018.
Base metals closed mixed with SHFE contracts rising for the most part. SHFE lead surged 1.59%, tin jumped 0.92%, nickel rose 0.79%, zinc increased 0.37%, copper grew 0.04%, while aluminum lost 0.14%. LME lead also soared 3.81%, zinc gained 1.46%, while aluminium slid 0.23%, copper fell 0.18%, and nickel edged down.
China Customs published China's trade balance for October, reporting a bigger-than-expected trade surplus as imports shrank significantly. China's trade balance for October came in at $34.01 billion, compared with the previous $31.70 billion.
--Nickel trading range for the day is 837.5-865.1.
--Nickel gained as support seen after release of domestic environmental review results in Anhui province bolstered prices
--U.S. President Donald Trump said China has hurt the United States economically but was ready to make a deal on trade, and that he is open to a fair agreement.
--China's PMI fell to 50.8 in October from 53.1 in September, the lowest since September 2017, and edged closer to the 50 line, separates growth from contraction.
Courtesy: Kedia Commodities