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The continuous contract of nickel on the Multi Commodity Exchange (MCX) witnessed a positive start to the year 2021 as it registered a new high of ₹1,446 during the final week of February. However, since the price band of ₹1,446 and ₹1,150 acted as a strong barrier, the contract made a U-turn. The price had fallen to ₹1,148 by the second week of March and therefore the contract lost about 20 per cent quickly. Since ₹1,148 provided good support, the decline was arrested and then the futures started to chart a sideways trend.
In early April, the contract decisively broke out of the resistance at ₹1,200 and faced a fresh roadblock after reaching ₹1,500 before a couple of weeks. Although it made a high of ₹1,511, the contract could not sustain above ₹1,500 and slipped to ₹1,430 last week. The contract rebounded on Wednesday as ₹1,430 is a support. The 21-day moving average currently lies around ₹1,450 and the price band of ₹1,430 and ₹1,450 will provide good support.
Traders can buy nickel futures with stop-loss at ₹1,450; target can be ₹1,540.
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