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Nickel on MCX settled down -1.3% at 826.20 dropped

Posted on Nov 08, 2017 by kc_admin

Nickel on MCX settled down -1.3% at 826.20 dropped on profit booking as investors locked in near-20 percent gains in the nickel market over the past month, with selling was sparked by data showing that higher prices have enticed more nickel ore exports from Indonesia. Prices had rallied since last few months as investors homed in on the potential impact of the rising demand for electric vehicles and while they agree that the potential is significant, they suspect the market has jumped the gun and a short-term pullback could be in order. Also support seen after the report that 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 sulphate, a key ingredient in lithium-ion batteries, will see demand increase 50% to three million metric tonnes by 2030. While other battery metals like cobalt and lithium have more than doubled since the start of last year, nickel prices have been subdued because of large inventories. The battery industry could revive the fortunes of miners more than a decade after nickel collapsed from a peak of $51,600 a tonne in 2007, when Indonesia and the Philippines started to flood the market with low-grade supply. Now technically market is getting support at 816.4 and below same could see a test of 806.6 level, And resistance is now likely to be seen at 835.7, a move above could see prices testing 845.2.

Trading Ideas:

#             Nickel trading range for the day is 806.6-845.2.

#             Nickel settled down on profit booking as investors locked in near-20 percent gains in the nickel market over the past month.

#             Prices had rallied since last few months as investors homed in on the potential impact of the rising demand for electric vehicles

#             Goldman Sachs upgraded its nickel forecasts, pushing its three-month nickel view to $12,500 a tonne from $9000