Nickel futures trade higher at Rs 1,073.30 per kg on strong demand, further upside seen

Nickel prices surged to Rs 1,073.30 per kg on October 6 as participants increased their long positions, as seen by the open interest.

Base metals traded higher tracking weakness in the US dollar and positive global cues. The US dollar index, measured against a basket of six currencies slipped 0.07 percent to trade at 93.48.

Nickel prices are getting support from lower stocks at SHFE-accredited warehouses and upbeat demand from China’s stainless steel sector. However, higher stocks at LME warehouses may cap the upside.

MCX iCOMDEX Base Metal Index jumped 142.25 points, or 1.24 percent, at 11,587.04 at 8:14 pm.

In the futures market, nickel for October delivery touched an intraday high of Rs 1,078.20 and a low of Rs 1,062.60 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 1,035.10 and a high of Rs 1,165.30.

Nickel delivery for October contract gained Rs 10.70, or 1.01 percent, to Rs 1,072.90 per kg at 8:16 pm with a business turnover of 2,026 lots. The same for November contract edged higher Rs 11.90, or 1.11 percent, to Rs 1,079.20 per kg with a turnover of 10 lots.

The value of the October and November’s contracts traded so far is Rs 1,580.39 crore and Rs 18.76 crore, respectively.

MCX Nickel price is trading near a strong resistance level, but price is expected to trade positively. Any breakout above Rs 1,078 would push the price higher towards Rs 1,088-1,094 levels intraday, said Axis Securities in a note.

The momentum indicator Relative Strength Index (RSI) is trading at 68, which is a bullish sign for prices.

At 2:49 pm GMT, the base metal's price rose 0.69 percent, quoting at $14,657.50 per tonne in London.