On MCX Nickel Settled Up 0.8% At 582.80

On MCX settled up 0.8% at 582.80 gained on short covering tracking support from LME nickel which ended 2.1 percent higher at $9,005, following a 2.1 percent slide on Tuesday despite news earlier in the week that about a dozen Indonesian nickel smelters had stopped operations because of a plunge in prices. However upside was capped after the update that a global deficit of refined nickel narrowed in April after a jump in refined metal output from Indonesia and China, data from the International Nickel Study Group showed on Thursday.

Global nickel production will come out of negative territory this year for the first time since 2013, driven by Indonesia's export ban moderation, a new report shows. Along with Indonesia, Canada and Australia will lead growth output rates from until 2021, while major miners in the number one global producer, the Philippines, will benefit from the ousting of anti-mining minister Gina López from government.

While the Philippines will remain the world’s largest nickel producer in absolute numbers in the years to come, its global share of the market will gradually be reduced as ores are depleted and stringent environmental regulations choke new potential projects. Refined nickel production in March was revised down sharply to 165,700 tonnes from 173,100 tonnes previously. 

Technically market is under short covering as market has witnessed drop in open interest by -5.51% to settled at 36853 while prices up 4.6 rupees, now Nickel is getting support at 572.1 and below same could see a test of 561.5 level, And resistance is now likely to be seen at 589.3, a move above could see prices testing 595.9.

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Suhani Verma

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