Commodity Outlook for Nickel by KediaCommodity

ZincNickel yesterday traded with the negative node and settled -2.5% down at 1091.7. Funds flowed into other base metal markets but avoided to enter nickel market due to its poor fundamentals overnight. Market reached a consensus that global nickel is in oversupply. In addition, China's NPI output will increase significantly and demand for nickel plate from steel mills will be weak. For today's session market is looking to take support at 1079.5, a break below could see a test of 1067.4 and where as resistance is now likely to be seen at 1110.8, a move above could see prices testing 1130.

Trading Ideas:

Nickel trading range is 1067.4-1130.

Nickel ended down due to its poor fundamentals

Nickel is having resistance at 1102.40 and support at 1088.20 level.

Spread between nickel DEC & JAN contracts yesterday traded in the range of 7.90 - 10.4.

SELL NICKEL DEC @ 1090-1095 SL ABV 1108 TGT 1082-1070-1062.MCX