Nickel on MCX settled up 2.26% at 675.40 on short covering as support seen from LME nickel which climbed 1.7 percent to $10,055 a tonne after sliding 10 percent last week.
Philippine President Rodrigo Duterte could reappoint the environment minister who ordered more than half the country's mines to shut down, as Congress appears set to defer a decision on her confirmation after concluding hearings last week. Congress' Commission on Appointments will meet on Tuesday to discuss issues surrounding the appointment of Environment Secretary Regina Lopez.
LME nickel increased sharply above USD 10,000/mt on Monday’s night trading after a significant decline. Indonesia is promoting nickel ore export policy, but the news will not affect China’s market until May. Nickel ore supply is tight in China’s market while stainless steel mills resume output successively after 2017 Chinese New Year holiday.
So, LME nickel will not decline below USD 10,000/mt in March with positive fundamentals. Investors will also keep an eye out for headlines coming out of a two-day meeting of G20 central bankers and finance ministers in Germany for further hints on the strength of the global economy and the future direction of monetary policy.
Technically market is under short covering as market has witnessed drop in open interest by -7.65% to settled at 23812 while prices up 14.9 rupees, now Nickel is getting support at 666.9 and below same could see a test of 658.5 level, And resistance is now likely to be seen at 681.8, a move above could see prices testing 688.3.