Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 2.97% to settled at 16340 while prices up 10.5 rupees.
Now MCX Nickel is getting support at 688.2 and below same could see a test of 679.3 level, And resistance is now likely to be seen at 704.5, a move above could see prices testing 711.9.
Nickel on MCX settled up 1.53% at 697.20 hitting their highest levels of the session as support seen from the update that First Quantum Minerals Ltd said it planned to suspend operations at its Ravensthorpe nickel mine in Western Australia at the beginning of next month due to persistently weak nickel prices.
Also support seen as dollar dropped after data showed that U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year. Meanwhile the rise of electric vehicles is driving the world's biggest mining house, BHP, to switch gears and invest heavily in its long-suffering nickel business.
Also Nickel producer Vale Indonesia said Indonesia's recent policy shift to allow ore exports is helping keep global prices of the metal low, and complicating efforts to establish partnerships for new smelter investments.
Traders are caution as risk aversion continued for the second day in a row, a day after North Korea said it was "carefully examining" a plan to strike Guam, where a U.S. military base is located. Also the release of inflation and initial jobless claims data failed to offset the flight to safety as both reports undershot expectations, stoking uncertainty over the Fed’s ability to raise rates later this year.
--Nickel trading range for the day is 679.3-711.9.
--Nickel gained tracking LME prices adding 3.3 percent to $10,985 on worries about capacity cuts at loss-making mines.
--First Quantum Minerals Ltd said it planned to suspend operations at its Ravensthorpe nickel mine in Western Australia at the beginning of next month.
--The Philippines is expected to export approximately 4.65 million wet tonnes in July, and Ni content in ore exports is estimated at 39,300 tonnes in July.
Courtesy: Kedia Commodities