Nickel on MCX settled down -0.71% at 666.70 tracking weakness in International prices of nickel which have remained low even though the Philippines, a major producer of the material used to make stainless steel, has repeatedly indicated that it will slash output. While some support seen in metals prices from a declining US dollar as traders shrugged off the Federal Reserve’s decision to hike rates and instead focused on the fact that the Fed is unlikely to accelerate its pace of future rate hikes.
Meanwhile data from US revelled that US homebuilding jumped in February as unseasonably warm weather boosted the construction of single-family houses to near a 9-1/2-year high, suggesting the economy remained on solid ground despite an apparent slowdown in the first quarter. Now traders are eyeing for fresh update from Indonesia which is expected to gradually set export quota and export timetable to further detail its new export ore policy.
Market expectations over ore supply shortages will change in March with progress of new export policy in Indonesia and end of monsoon season in the Philippines. Those suppliers have begun contacting with domestic ore traders from late February-early March. Technically market is under fresh selling as market has witnessed gain in open interest by 4.07% to settled at 23851 while prices down -4.8 rupees, now Nickel is getting support at 661.4 and below same could see a test of 656.1 level, And resistance is now likely to be seen at 674.5, a move above could see prices testing 682.3.