Technically Nickel market is under short covering as market has witnessed drop in open interest by 8.45% to settled at 9181 while prices up 27.8 rupees.
Now MCX Nickel is getting support at 804.1 and below same could see a test of 790.9 levels and resistance is now likely to be seen at 825.4, a move above could see prices testing 833.5.
Nickel on MCX settled up 3.52% at 817.30 as support seen from Chinese nickel futures which led gainers building on hefty overnight gains in the London market as consumers built positions as a hedge against further price rises.
The most-traded nickel contract on the Shanghai Futures Exchange was up just over 2 percent to 101,520 yuan ($15,292) a tonne, Also Three-month nickel on the London Metal Exchange, however, eased slightly to $12,475 a tonne after galloping 3 percent higher overnight.
Nickel has gained 23 percent this year, driven by hopes that growth in electric vehicles will boost demand for the metal in batteries. Support also seen after the update that Vale suspended operations at its Coleman nickel mine in Canada due to safety concerns, the Canadian Broadcasting Corporation said on Friday.
Now in the week ahead, inflation readings will matter most for global financial markets, with the U.S., UK, euro zone and Canada all set to release CPI data. Investors will also be focusing on the Central Bank Communications Conference hosted by the ECB, with a panel discussion including the heads of the European, U.S., British and Japanese central banks in the spotlight.
--Nickel trading range for the day is 790.9-833.5.
--Nickel prices gained driven by hopes that growth in electric vehicles would boost demand for the metal in batteries.
--Investors will be looking at Chinese fixed asset investment and industrial production numbers for October to glean any signs of weakening demand for commodities.
--Nickel ore inventories in all domestic ports is 106.3 million wet tonnes, converting into 86,900 metallic tonnes, rising 460,000 wet tonnes on weekly basis.
Courtesy: Kedia Commodities