Nickel on MCX settled down -0.29% at 646.20 tracking weakness from LME Nickel which settled
down by 0.6% at $9,940 per tonne as ample supply seen in the market. Cash LME nickel fell to a $67 discount against the three month nickel contract, the steepest discount since Jan 2015, reflecting a market in ample supply.
The rebound in the base metals prices suggests underlying sentiment remains strong enough to encourage solid dip-buying, but for most of the metals there is not enough follow-through buying yet to absorb the overhead selling that is still around. Also Activity in China's vast manufacturing sector likely grew for an eighth straight month in March as a surprise rebound in the property market added to a construction boom, boosting sales of building materials from steel to cement, a Reuters poll showed.
Meanwhile, British Prime Minister Theresa May triggered Article 50 on Wednesday, the legal process by which Britain will leave the EU. Article 50 gives the leaving country two years to negotiate an exit deal and once it's triggered, it can't be stopped except by unanimous consent of all member states. Elsewhere, investors mulled over comments from Federal Reserve officials, as Fed member Charles Evans said Wednesday, he has confidence that two total rate increases in 2017 seems “very safe”.
Now Market watchers will also be watching U.S. economic reports, including figures on personal income and spending and appearances by a number of Fed officials. Technically market is under long liquidation as market has witnessed drop in open interest by -12.89% to settled at 19501 while prices down -1.9 rupees, now Nickel is getting support at 641.6 and below same could see a test of 636.9 level, And resistance is now likely to be seen at 650.9, a move above could see prices testing 655.5.