Nickel market under long liquidation; Support seen at 815.6
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by -3.2% to settled at 8887 while prices down 3.9 rupees
Now Nickel is getting support at 815.6 and below same could see a test of 809 level, And resistance is now likely to be seen at 827.3, a move above could see prices testing 832.4.
Nickel on MCX settled down -0.47% at 822.30 recovered from the day's low as investor excitement about the prospects of more demand from electric vehicles was seen as premature while supplies from Indonesia were rising.
Demand for nickel will outstrip global supply for the third year on the trot in 2018, although the size of the deficit is set to shrink, according to Chinese state-backed research firm Antaike. Appetite for nickel has been driven up as battery makers increasingly turn to the base metal to help power global electric car sales.
The global deficit in nickel supply will drop to 53,000 tonnes in 2018 from 98,000 tonnes this year, partly due to a recovery in Chinese production growth, Antaike nickel analyst Xu Aidong said in a presentation on Tuesday at an industry conference in southern China.
Goldman Sachs upgraded its nickel forecasts, pushing its three-month nickel view to $12,500 a tonne from $9,000, but said prices were more likely to find nearby support from China's pollution crackdown given electric vehicle demand is a story for 2020 onwards. Nickel had a significant run this year.
In last 2 months prices, went up by almost 20% from 690 to 835 levels riding on electric car boom which is now the driving force behind the Base metal rally.
--Nickel trading range for the day is 809-832.4.
--Nickel dropped as selling sparked by data showing that higher prices have enticed more nickel ore exports from Indonesia.
--Indonesia’s Energy and Mineral Resources Ministry said it has issued export quota recommendations for 20.4 million tonnes of nickel ore.
--Recently one high-nickel pig iron plant began to do maintenance, mainly to coordinate with stricter environmental protection requirements to overhaul desulfurizers.
Courtesy: Kedia Commodities