The nickel futures contract on the Multi Commodity Exchange (MCX) has been stuck in a sideways range between ₹850 and ₹910 per kg for about three weeks. Within this range, the contract made a low of ₹856 on Tuesday and has bounced back. It is currently trading at ₹872.

The near-term outlook is unclear for the contract. It can continue to trade in a sideways range between ₹850 and ₹910 for some more time.

As long as the contract sustains above ₹850, there is a strong likelihood of it breaking the range above ₹910 in the coming days. Such a break trigger a fresh rally targeting ₹950 or even higher levels.

Traders with a medium-term perspective can go long on dips at ₹860 and accumulate at ₹850 and ₹840. Stop-loss can be placed at ₹820 for the target of ₹940. Revise the stop-loss higher to ₹880 as soon as the contract moves up to ₹905.

The contract will come under pressure if it breaks below ₹850. Such a break can drag the contract lower to ₹840 or ₹830.

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

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