Nickel prices climbed to Rs 1,216.10 per kg on April 22 as participants trimmed their positions as seen by the open interest. The base metal extended gain after a gap-up open in the evening session to trade at day’s high.
The non-ferrous commodity has been trading higher than 5 and 200 days’ moving averages but lower than 20, 50, and 100 days’ moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 48.05, which indicates sideways momentum in prices.
Industrial metals in international market traded sideways to higher, tracking weakness in US Dollar index and hopes of recovering economic growth in major industrial metal consumer China.
The US dollar traded lower at 90.96 or down 0.40 percent on Friday against a basket of six currencies.
MCX METLDEX increased 81 points, or 0.56 percent, to 14,610 at 19:07. The index tracks real-time performance of key base metals.
MCX Nickel price has seen strong pullback after testing several supports near trendline, price is expected to trade positively, according to Axis Securities. Any breakout above Rs 1,216 would push the price higher towards Rs 1,226 - Rs 1,232 levels intraday.
The hourly momentum indicator RSI is trading at 52 and it has given a bullish divergence, the broking firm added.
In the futures market, nickel for April delivery touched an intraday high of Rs 1,222 and a low of Rs 1,200.50 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 13.40, or 1.11 percent, to Rs 1,216.10 per kg at 19:17 hours with a business turnover of 1,082 lots. The same for May contract surged by Rs 11.40, or 0.94 percent, to Rs 1,223.60 per kg with a turnover of 930 lots.
The value of the April and May’s contracts traded so far is Rs 763.22 crore and Rs 321.21 crore, respectively.
MCX Nickel price is expected to trade in a bullish trend with support at Rs 1,208 level and intermediate support at Rs 1,217 level, said Motilal Oswal Financial Services (MOFSL). The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 1,231- Rs 1,238 zone.
At 13:51 (GMT), the industrial metal price was up 1.20 percent at $16,185 per tonne in London.
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