Comments
The nickel futures contract on the Multi Commodity Exchange (MCX) fell initially in the week beginning March 8. However, the down move was short lived, and the contract has reversed sharply higher after recording a low of ₹853.5 a kg on March 8. The contract has surged over 6 per cent from this low and is currently trading at ₹907 per kg.
Bullish outlook
The support at around ₹850 is holding well and last week’s strong bounce from this support level is a positive. Immediate resistance is at ₹908, which is likely to be breached. Such a break can take the MCX-Nickel futures contract higher to ₹920 or ₹925 in the short-term. A strong break and a decisive close above ₹925 will then pave the way for the next targets of ₹940 and ₹950.
The region around ₹850 will continue to remain as a crucial support. The contract will come under pressure only if it breaks decisively below ₹850. Such a break will increase the likelihood of the contract falling towards ₹800 on the back of profit booking. However, such a sharp fall breaking below ₹850 looks less probable at the moment.
Trade strategy
Medium-term traders, who have taken long positions last week on dips at ₹860, can hold it with the revised stop-loss at ₹885 and for the target of ₹940. Move the stop-loss further higher to ₹915 as soon as the contract touches ₹922.
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.