Nickel On MCX Settled Up 0.94%

Nickel on MCX settled up 0.94% at 580.1 as support seen after news some Indonesian nickel smelters cease operations due to falling prices. About a dozen newly constructed nickel smelters in Indonesia have stopped operations due to a plunge in nickel prices while others are operating at a loss, an industry association executive said.

Thirteen smelters with a combined capacity of 750,000 tonnes of nickel pig iron a year "were forced to cease operation" because nickel prices reached as low as around $8,000 a tonne, Jonatan Handojo, deputy chairman of the Indonesian Smelter Association told, declining to name the owners of the smelters. China’s housing market is cooling down following a series of restrictive policy, and such condition is expected to be continuing during the rest of the year.

Data showed China's economy generally remained on a solid footing in May, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in the coming months. The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labour market slack that could allow the Fed to raise interest rates again this year despite moderate inflation growth.

Technically market is under short covering as market has witnessed drop in open interest by -0.5% to settled at 40703 while prices up 5.4 rupees, now Nickel is getting support at 574.3 and below same could see a test of 568.5 level, And resistance is now likely to be seen at 586.3, a move above could see prices testing 592.5.

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Suhani Verma

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