Technically MCX Nickel market is under long liquidation as market has witnessed drop in open interest by 14.41% to settled at 9438 while prices down 9.9 rupees.
Now MCX Nickel is getting support at 878.7 and below same could see a test of 870.6 level, And resistance is now likely to be seen at 901.2, a move above could see prices testing 915.6.
Nickel on MCX settled down 1.1% at 886.80 tracking weakness from LME Nickel which ended down 1.3 percent at $13,675 a tonne after Nickel prices jumped 4.4 percent on Friday after the number of cancelled warrants in LME warehouses - metal earmarked for delivery and unavailable to the market - increased to 38 percent of total warrants from 30 percent.
Last week on Friday Nickel prices have been bolstered by declining stocks as well as the positivity surrounding the metal’s use in the electric vehicle sector. Nickel stocks at LME warehouses fell by 1,890 tonnes to 328,998 tonnes last Friday, while those at SHFE-approved warehouses decreased by 1,359 tonnes to 328,998 tonnes.
The underlying support stemming from the positive picture for nickel from the electric vehicle sector is also continuing to buoy prices. Nickel is still enjoying overall bullishness as growth in the electric vehicle market is likely to support nickel; it received further support on Monday after Chinese Premier Li Keqiang said buyers should continue to enjoy tax subsidies and non-cash incentives.
Meanwhile, stainless steel prices have been unable to replicate the success that nickel prices have had so far this morning with an accumulation of stocks, weak demand and soft prices keeping the stainless steel market under pressure, according to market participants. Some stockists are planning to lower their prices further to draw down their inventories, market sources said.
--Nickel trading range for the day is 870.6-915.6.
--Nickel prices dropped on profit booking after prices rose on Friday as LME data showed a 13 percent slide in on-warrant stocks.
--Nickel ore imports from the Philippines and Indonesia likely to pick up from March end.
--China’s nickel concentrate supplies to grow as new mines in Qinghai province and Russia are set to open in 2020.
Courtesy: Kedia Commodities