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Support seen at 679.6 for MCX Nickel
Commodity Online | August 16 2016
UPDATED 16:26:33 IST

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Nickel on MCX settled down -3.81% at 688.7 after several economic reports on China revived demand concerns in the world’s top user of raw materials. LME Nickel on Friday slid 4 percent to finish at $10,305 a tonne, the weakest since July 27 and the biggest one-day drop in more than a month. Three-month LME nickel has shot up 24 percent since the start of June, hitting its strongest in a year on Wednesday, after the Philippines launched an environmental crackdown on mines.

In the coming week, the Philippines is expected to announce the results of an audit under way for the past month, having suspended 10 mines so far for environmental violations, eight of them nickel ore producers. China’s economic stabilization faltered in July as factory output, retail sales and investment all slowed. The country’s broadest measure of new credit and another key gauge of lending increased at the slowest pace in two years.

In the U.S., retail sales stalled in July, while wholesale prices unexpectedly fell. Disappointing economic data from China is keeping base metal prices in check at the end of the week, with all of them losing ground moderately. In China, industrial production rose 6 percent from a year earlier in July, retail sales climbed 10.2 percent last month, and fixed-asset investment increased 8.1 percent in the first seven months of the year.

Technically market is under fresh selling as market has witnessed gain in open interest by 35.79% to settled at 15408 while prices down -27.3 rupee, now Nickel is getting support at 679.6 and below same could see a test of 670.6 level, and resistance is now likely to be seen at 705.8, a move above could see prices testing 723.

Trading Ideas:
Nickel trading range for the day is 670.6-723.
Nickel prices dropped after several economic reports on China revived demand concerns in the world’s top user of raw materials.
Philippines is expected to announce the results of an audit under way for the past month, having suspended 10 mines so far for environmental violations
China’s economic stabilization faltered in July as factory output, retail sales and investment all slowed.

Courtesy: Kedia Commodities

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