Nickel futures down 0.22% to Rs 1,011 per kg, Axis Securities sees further downside

Nickel prices slid to Rs 1,011 per kg on August 21 as participants increased their short positions. The base metal pared gains from the morning session and traded in the red in evening trade on gains in the dollar and rising inventories at accredited warehouses of the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE).

In the futures market, nickel for August delivery touched an intraday high of Rs 1,118 and a low of Rs 1,095.60 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the base metal touched a low of Rs 963.6 and a high of Rs 1,119.9.

Nickel futures for August delivery slipped Rs 2.4, or 0.22 percent, to Rs 1,101 per kg at 18:47 hours on a business turnover of 1,850 lots. The same for September delivery fell Rs 3.4, or 0.31 percent, to Rs 1,109.8 per kg on a turnover of 429 lots.

The value of the August and September contracts traded so far is Rs 2,104.97 crore and Rs 71.81 crore, respectively.

"Nickel failed to break its strong resistance level and has seen a strong correction. Price is expected to trade negatively. Sustaining below Rs 1,107.70 would drag prices lower towards Rs 1,096-1,090 levels in intraday trade," according to Axis Securities.

At 1322 (GMT), the base metal futures was up 0.41 percent at $14,685 per tonne in London.