Comments
The nickel futures contract on the Multi Commodity Exchange (MCX) has been in a sideways consolidation phase since early July, between ₹910 and ₹970. After gaining 2 per cent on Tuesday, the contract witnessed selling interest and fell on Wednesday.
However, the contract has regained some ground and currently trades at ₹946/kg. Since facing a key resistance at ₹1,060 in early June, the contract has been on a medium-term downtrend. Within this downtrend, the contract is in a sideways movement.
We reiterate that a decisive break above the key resistance level of ₹970 can push the contract higher to the next resistance at ₹1,000. Traders with a medium-term view can continue to hold their long positions with a revised stop-loss at ₹925 and accumulate on a strong rally above ₹970. Medium-term targets are ₹1,000 and ₹1,025. Revise the stop-loss higher to ₹960 as the contract moves higher to ₹1,000 levels.
Subsequent resistances are at ₹1,025 and ₹1,050. Inability to move beyond ₹970 will keep the contract in sideways movement. Conversely, a conclusive fall below the lower boundary at ₹910 will strengthen the downtrend and pull the contract down to ₹890 levels. A plunge below this support can drag the contract lower to ₹865 and ₹850 levels.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.