Nickel on MCX settled down -2.23% at 645.1 as pressure continues due to rise in dollar and Indonesia’s move to relax its export ban. At first, nickel collapsed on the expectation that Indonesia would allow more exports, but when Indonesia made it clear that it would not flood the markets prices recovered some of their losses. Nickel ore inventories at seven major Chinese ports kept dropping in the week ending Jan. 26. Nickel ore inventories at seven major Chinese ports were down 150,000 tonnes on a weekly basis. Trading in China’s domestic nickel ore market was quiet light with the 2017 Chinese New Year holiday. Economic growth in the U.S. slowed by more than anticipated in the final three months of 2016, according to a report released by the Commerce Department. The report said gross domestic product increased by 1.9 percent in the fourth quarter following a 3.5 percent jump in the third quarter. Reflecting a continued decrease in orders for transportation equipment, the Commerce Department released a report showing an unexpected drop in new orders for durable goods in the month of December. The Commerce Department said durable goods orders fell by 0.4 percent in December after tumbling by a revised 4.8 percent in November. The dip came as a surprise to economists, who had expected durable goods orders to jump by 2.6 percent following the 4.5 percent slump that had been reported for the previous month. Technically market is under long liquidation as market has witnessed drop in open interest by -0.77% to settled at 22513 while prices down -14.7 rupees, now Nickel is getting support at 635 and below same could see a test of 625 level, And resistance is now likely to be seen at 656.5, a move above could see prices testing 668.

Trading Ideas:

Nickel trading range for the day is 625-668.

Nickel dropped as pressure continues due to rise in dollar and Indonesia’s move to relax its export ban.

Economic growth in the U.S. slowed by more than anticipated in the final three months of 2016, according to a report released by the Commerce Department.

Nickel ore inventories at seven major Chinese ports kept dropping in the week ending Jan. 26.