The Nickel futures contract on the Multi Commodity Exchange (MCX) has failed to sustain its bounce back move witnessed in the past week. The contract made a low of ₹587.2 per kg on April 27 and had bounced higher from there. But this bounce back move was short lived and the contract has reversed sharply lower after making a high of ₹619 per kg on Monday. It has tumbled about 3 per cent from this high and is currently trading at around ₹601. Immediate support is at ₹598. If the contract manages to sustain above this support, it can bounce to ₹615 and ₹620 levels once again. The 21-day moving average and a trend-line support at ₹624 is a crucial support to watch. The downside pressure will ease if the contract manages to surpass this hurdle. In such a scenario the contract can extend its upmove to ₹635 or even ₹640 levels. On the other hand, if the MCX-Nickel futures contract fails to reverse higher from the immediate support at ₹598 then it can remain under pressure and fall to ₹590 levels once again. This will also keep the contract under pressure for a further fall. The downtrend that has been in place since March will remain intact in such a scenario and there will be a strong likelihood of the contract falling to ₹570 or even to ₹550 levels in the coming weeks.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading
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.