Gold Silver Reports — Technically Nickel market is under short covering as market has witnessed drop in open interest by 0.1% to settled at 38844 while prices up 9.7 rupees.
Now MCX Nickel is getting support at 572 and below same could see a test of 564 level, And resistance is now likely to be seen at 598, a move above could see prices testing 610.
Nickel on MCX settled up 1.67% at 589.7 after LME nickel bounced 1.4 percent to close at $9,140 after touching $8,905, the weakest since June 24 last year as the news that Regina Lopez was not confirmed as Environment Minister in the Philippines. In the mid of the week lawmakers in the Philippines removed Lopez from the post.
Lopez was a controversial leader due to her crackdown on the mining industry. She ordered the closure of dozens of mines after environmental inspections found supposed violations of regulations. Investors have been worried about additional nickel supply coming from the Philippines after the removal of the country’s environment minister, who had led a crackdown on mining.
Many of these mines were nickel producers, and the crackdown removed a great deal of supply from the market. However, that she has been outed there is the possibility that a more “mining friendly” person will take the role and lift the mine suspensions.
In the meantime, Indonesian shipments are already picking up after a relaxation of the government’s ore export ban and demand currently offers no chink of light for this market.
The base metals have been under pressure recently, and on Wednesday the complex saw a big sell-off. Instead, the metals remain pressured by the recent batch of negative Chinese economic data which is denting future demand expectations. — Neal Bhai Reports
