MCX Nickel under fresh buying; Resistance seen at 823.4

Nickel market is under fresh buying as market has witnessed gain in open interest by 1.44% to settled at 16328 while prices up 5.8 rupees.

Now MCX Nickel is getting support at 809.6 and below same could see a test of 802.6 level, And resistance is now likely to be seen at 823.4, a move above could see prices testing 830.2.

Nickel on MCX settled up 0.72% at 816.7 on signs of some easing in the trade war between the United States and China. There are reports that China submitted a written response to U.S. demands for trade reforms.

However, the gains were muted after a senior U.S. official expressed concerns about the trade items China was unwilling to negotiation on. Nickel inventories in the Shanghai bonded areas shrank 1,000 mt, or 3.3% from a week earlier to stand at 29,500 mt as of Friday November 16, data showed.

As the import window opened in the second half of the week, importers moved cargoes from bonded warehouses to the domestic spot market. Some 600 mt in metal content of high-grade nickel pig iron (NPI) output will be affected in November as the second round of national environmental review extended to Shandong province.

Affected production accounted for some 1.7% of domestic high-grade NPI output in October. From late October, five inspection teams from the central government started to settle in Shanxi, Liaoning, Jilin, Anhui, Shandong, Hubei, Hunan, Sichuan, Guizhou and Shaanxi provinces to supervise local environmental conditions and review the implementation of rectification plans that were made during previous environmental checks.

The eurozone trade surplus dropped sharply to €13.4 billion in September, down from €16.6 billion in August. The weak reading was a result of a weakness in exports, which fell 1% in September, on an annualised basis.

Trading Ideas:
–Nickel trading range for the day is 802.6-830.2.
–Nickel prices gained on signs of some easing in the trade war between the United States and China.
–Nickel inventories in the Shanghai bonded areas shrank 1,000 mt, or 3.3% from a week earlier to stand at 29,500 mt as of Friday November 16, data showed.
–Some 600 mt in metal content of high-grade NPI output will be affected in November as the second round of national environmental review extended.

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