Nickel On MCX Settled Down -0.9% At 591.30

Nickel on MCX settled down -0.9% at 591.30 continuous to trade with weakness tracking LME Nickel prices which have hit 10-month lows as worries about demand from top consumer China were reinforced by its trade data, which showed falling imports of the metal used to make stainless steel. Benchmark nickel on the London Metal Exchange ended 1 per cent down at $US9,225 a tonne from an earlier $US9,220, its lowest since June last year.

While traders are keen to have long position in nickel as prices can be supported by concern about supplies of ore from the Philippines, which last month ordered the closure of more than half the nation's mines to protect water resources, but pressure seen as still a lot of stock are there in the market. LME warehouse stocks at 379,338 tonnes account for about 20 per cent of global nickel consumption estimated at about 2 million tonnes this year.

While China's nickel imports in the first three months of the year were 43,382 tonnes, down 60 per cent from the same period last year. Industrial metals overall could come under pressure from a stronger US currency that could potentially weaken metals demand. When the dollar gains in value it makes commodities more expensive for holders of other currencies.

Technically market is under long liquidation as market has witnessed drop in open interest by -7.54% to settled at 29716 while prices down -5.4 rupees, now Nickel is getting support at 588.7 and below same could see a test of 586 level, And resistance is now likely to be seen at 595.7, a move above could see prices testing 600.          
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Suhani Verma

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