Nickel futures up 0.44% in evening trade, Axis Securities see further weakness

Nickel prices climbed to Rs 998.20 per kg on July 20 as participants increased their long positions.

Base metals are trading under pressure after data showed rising inventories in Chinese warehouses and increasing coronavirus cases, which threaten a sustainable global economic recovery.

In the futures market, nickel for July delivery touched an intraday high of Rs 1,001.80 and a low of Rs 994 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 924.10 and a high of Rs 1,036.60.

Nickel futures for July delivery gained Rs 4.4, or 0.44 percent, to Rs 998.2 per kg at 18:05 hours on a business turnover of 2,035 lots. The same for August delivery rose Rs 2.6, or 0.26 percent, to Rs 1,001.70 per kg on a turnover of 350 lots.

The value of July and August’s contracts traded so far is Rs 993.81 crore and Rs 33.84 crore, respectively.

"Nickel is trading under a falling trend line channel and is expected to trade negatively. Sustaining below Rs 999 would drag price lower towards Rs 990-985 levels in coming sessions. The momentum indicator -- Relative Strength Index (RSI) -- is trading at 34, indicating bearishness in prices," Axis Securities said.

At 12:40 (GMT), the base metal futures was up 0.53 percent at $13,202.50 per tonne in London.

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