Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 0.93% to settled at 23654 while prices down 3.6 rupees.
Now MCX Nickel is getting support at 694.1 and below same could see a test of 689.3 levels and resistance is now likely to be seen at 704.7, a move above could see prices testing 710.5.
Nickel on MCX settled down -0.51% at 699 as the prospect of slower Chinese demand and dollar gains. Brazilian miner Vale SA dialed back its nickel output forecasts for the next five years; although the world's top producer praised the metals longer term prospects on likely soaring demand for electric cars.
Vale cut its nickel output estimate by 15 percent to 263,000 tonnes next year and said it was still seeking an investor for its New Caledonia nickel mine. Confidence among Japanese manufacturers held firm in December and service-sector sentiment rose for a second straight month, underscoring steady economic growth driven by both external and domestic demand.
China should priorities financial stability above development goals, as pursuit of regional growth targets and helping firms avoid heavy job losses had led to a surge in debt, particularly at local government level, the International Monetary Fund said.
China will "significantly" widen market access for foreign investors, state radio quoted vice premier Wang Yang as saying, following a recent move to raise foreign ownership limits in local financial firms.
The Trump administration has said its tax cuts will generate growth and spark inflation, which investors hope will prompt a faster pace of monetary tightening by the Fed.
--Nickel trading range for the day is 689.3-710.5.
--Nickel prices dropped as the prospect of slower Chinese demand and dollar gains.
--Glencore has increased production of metals used to make electric car batteries faster than its major mining rivals.
--One low-grade NPI plant in North China will reduce half of its output in December due to green policies.
Courtesy: Kedia Commodities