Nickel intraday

MCX Nickel mostly trades bearish and registered days low at 933, closed at 941.50 with loss of 3.29% from Saturday closing. Intra day high registered near 975.

A large LME nickel market short might be just about to cover and even add length to its portfolio, stirrings of improved demand from the stainless sector, with consumers on the oil side boosting pipe needs ahead of the winter drilling season.

Government's Australian Bureau of Agricultural & Resource Economics forecasts metal will average $27,000/ton in 2008, down 27% on-year, also down from average $28,770/ton in first 4 months of this year. Rising nickel production at new mines, scheduled to commence from mid-2008 is expected to increase nickel supply in 2009," hence forecast price to decline to average $22,000 in 2009.

Australian exports to rise 11% next fiscal year to 236,000 tons from actual 212,000 tons this fiscal year ending June 30, in part reflecting forecast 31% on-year increase in nickel mine production to 256,000 tons next fiscal year.


Nickel inventories at LME, decreased by 126 MT to 46734 MT.


MCX Nickel June - Technical Outlook:

The daily stochastics have crossed over down which is a bearish indication. The prices closed below short term and medium term EMA, which supports bears. MACD is heading downwards in positive region, showing decrease in bullish momentum.

Technical are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 925 levels. If broken can see further fall to 908 and 883, If market holds above 950 further rally can be seen towards 967 and 992


Recommendations: MCX Nickel June: Sell at 955 Target 922 and 910 SL 965


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