Nickel on MCX settled up 0.43% at 738.90 continued its rally as LME nickel rose 1 percent to $11,095 a tonne for the first time in a fortnight, a point that marked the end of a sharp and sustained rally of approximately 20% in January/February. While yesterday prices at one point of time traded below 730 rupee on MCX after China cut its growth target this year as the world's second-largest economy pushes through painful reforms to address a rapid build-up in debt, and erects a "firewall" against financial risks.
Meanwhile the latest trade statistics released by the Japanese Ministry of Finance (MoF) indicates that the country’s stainless steel scrap imports continued its rising trend during the month of January this year. The monthly imports increased marginally when compared with the previous month. The imports had recorded year-on-year jump during entire calendar year 2016. According to MoF, Japan imported 7,398 tons of stainless steel scrap during the first month of the year.
This is marginally higher by 1.2% when compared with the prior month. The country’s stainless steel scrap imports had totaled 7,309 tons in December 2016. Also, the average import prices from many key sources including the US, South Korea and Taiwan increased during the month, despite the fall in LME nickel prices.
In the week ahead, markets will be looking ahead to Friday’s U.S. jobs report, which could seal the deal for a Fed rate hike later this month. Investors will also be looking to the outcome of Thursday’s ECB meeting for fresh cues on the future direction of its stimulus program. Technically market is getting support at 732 and below same could see a test of 725.2 level, And resistance is now likely to be seen at 742.8, a move above could see prices testing 746.8.