The MCX-Nickel futures contract on the Multi Commodity Exchange (MCX) seems to be lacking strength. The contract has been stuck in a narrow range between ₹925 and ₹950 per kg in the past week. Within this range it is currently trading at ₹931 per kg. The immediate outlook is unclear. Whether the contract breaks above ₹950 or not will decide the next move. Traders can stay out of the market until a clear trend emerges.

If the contract manages to break above ₹950 decisively, it can gain fresh momentum. Such a break will increase the likelihood of the contract rallying to ₹985 or ₹990 in the short-term. A strong break and a decisive close above ₹990 will then boost the momentum and will take the contract higher towards ₹1,050 levels over the medium-term.

On the other hand, if the MCX-Nickel futures contract remains below ₹960, there is a strong likelihood of it falling to ₹910 in the short term. A break below ₹910 will bring renewed pressure and will drag the contract to ₹890 or ₹885 thereafter. The region between ₹890-₹885 is a key medium-term support zone. Further fall below ₹885 looks less probable at the moment. An upward reversal from this ₹890-₹885 support zone will have the potential to take the contract higher back towards ₹1,000 over the medium term. But if the contract breaks below ₹885, a fall to ₹870 or even ₹850 cannot be ruled out.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading

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