Nickel futures rise nearly 1% to Rs 1,195.60 per kg, outlook bullish



Nickel prices jumped to Rs 1,195.60 per kg on April 1 as participants increased their long positions as seen by the open interest. The base metal extended gain after a gap-down open in the evening session to trade at day’s high.

The non-ferrous commodity has been trading higher than 20 and 200 days’ moving averages but lower than 5, 20, 50, and 100 days’ moving averages on a daily chart. The Relative Strength Index (RSI) is at 44.60 which indicates weak momentum in prices.

Nickel price rose on lower inventories at ShFE accredited warehouses; however, rising inventories at LME may cap the upside.

The US dollar traded lower at 93.10 or down 0.14 percent on Thursday against a basket of six currencies.

MCX METLDEX surged 49 points, or 0.35 percent, to 13,864 at 19:40. The index tracks real-time performance of key base metals.

Sunand Subramaniam, Senior Research Associate, Choice Broking said, “Fundamentally for the month ahead, we are expecting LME and MCX Nickel futures to witness uptrend with reports of higher demand from the battery sector in the United States. Recently, President Joe Biden’s vast infrastructure plan of $ 2.3 trillion includes $ 174 billion to boost the market for electric vehicles and billions more for renewable power – both provisions aimed at weaning the US off of fossil fuels and combating climate change, which is estimated to support global nickel prices in the coming weeks.”

“The plan to rebuild America’s crumbling infrastructure proposes doubling federal funding for mass transit and spending $ 80 billion to expand and modernize passenger rail service; estimated to support global base metal prices”, he added.

In the futures market, nickel for April delivery touched an intraday high of Rs 1,196.70 and a low of Rs 1,176.50 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 1,154.30 and a high of Rs 1,461.30.

Nickel delivery for the April contract gained Rs 11.50, or 0.97 percent, to Rs 1,195.60 per kg at 19:50 hours with a business turnover of 1,809 lots. The same for May contract surged by Rs 11.90, or 1 percent, to Rs 1,200 per kg with a turnover of 50 lots.

The value of the April and May’s contracts traded so far is Rs 709.66 crore and Rs 5.80 crore, respectively.

MCX Nickel price has seen a pullback after forming supports near the trend line, price is expected to trade positively, said Axis Securities.

Axis Securities Axis Securities

Any breakout above Rs 1,188 would push the price higher towards Rs 1,200-1,205 levels in the intraday. The price has well placed above 21 and 60 hourly EMA which is a bullish sign.

At 14:23 (GMT), the industrial metal price was up 1.79 percent, quoting at $ 16,182.50 per tonne in London.

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