Nickel On MCX Settled Down -0.26%

Nickel on MCX settled down -0.26% at 585.60 as pressure seen after China's latest moves to curb shadow banking and risky investment dented the growth outlook in the world's top metals consumer. Late on Monday, China's banking regulator tightened disclosure rules on lenders' WMPs. Separately, the China Banking Regulatory Commission (CBRC) unveiled plans to publish a flurry of regulations later this year to control financial risks.

LME Nickel prices dropped 1.6 percent to $9,085 a tonne on the speculation that China's growth is set for its weakest patch since the global financial crisis as authorities pull back on the stimulus that helped the economy get off to an unexpectedly strong start this year, and keep funds tight to deter risky lending. Meanwhile Steelmaking ingredients zinc and nickel were pressured by recent falls in Shanghai rebar steel, which has been hit by concerns over plentiful supply and slow demand growth in China.

With the focus on the supply side, not much attention is being paid to other fundamentals. Right now a pullback in the US dollar is lending support to most dollar-denominated commodities. But, base metals have been somewhat immune even as the ICE US Dollar Index fell to a six-month low. Nickel in particular is shrugging off the greenback’s decline with the focus remaining on the Philippines. According to the news agency Philippine nickel miners are looking for a strong rebound in nickel production this year with newly appointed Environment Secretary Roy A.

Cimatu signaling openness to allow shuttered mines to resume operations after a review. Now technically market is getting support at 580.2 and below same could see a test of 574.8 level, And resistance is now likely to be seen at 591, a move above could see prices testing 596.4.

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Suhani Verma

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