Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 3.12% to settled at 7507 while prices up 5.5 rupees.
Now MCX Nickel is getting support at 993.8 and below same could see a test of 982.1 levels and resistance is now likely to be seen at 1012.2, a move above could see prices testing 1018.9.
Nickel on MCX settled up 0.55% at 1005.5 gained on fresh buying and support also seen after the update that global nickel market deficit widened to 15,700 tonnes in March from a revised deficit of 6,600 tonnes in the previous month, the International Nickel Study Group said.
The dollar hit a four-month high against the yen, buoyed by a rise in U.S. Treasury yields that suggests a more upbeat outlook for the world's largest economy. LME nickel climbed 0.8 percent to end at$14,595 a tonne.
It is the best performing LME metal this year with gains of about 15 percent, but Commerzbank (DE:CBKG) was cautious about further gains due to an extended net long speculative position.
“A price correction would thus come as no surprise, especially as the Beijing-based metals analytical firm Antaike envisages demand growth of only 3.5 percent in China this year,” the German bank said in a note.
Now in a session with no major economic reports stateside, market participants will focus their attention on appearances from Federal Reserve policymakers as they seek to gauge plans for policy tightening.
Now the focus this week will undoubtedly be on Fed chairman Jerome Powell who will participate in a panel discussion of "Financial Stability and Central Bank Transparency" at the Sveriges Riskbank Conference in Stockholm, Sweden on Friday.
Trading Ideas:
--Nickel trading range for the day is 982.1-1018.9.
--Nickel remained supported with prices underpinned as the chance of a U.S.-China trade war appeared to fade.
--The global nickel market deficit widened to 15,700 tonnes in March from a revised deficit of 6,600 tonnes in the previous month.
--Stocks registered with the ShFE closed last week at 33,000 tonnes, their lowest level since October 2015, when the Shanghai contract was in its infancy.