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The continuous contract of nickel on the Multi Commodity Exchange (MCX), after an initial rally in 2021, declined sharply in the final week of February and first week of March. The price slumped from about ₹1,446 to ₹1,150 levels.
On the back of the support of ₹1,150, the contract stopped declining and after a brief period of consolidation resumed its upward movement. The rally, which began towards the end of March, is steady and while the trend seemed to slow at around ₹1,385 levels, the bulls did not give up. As a result, the contract moved above this level and retested ₹1,385 after reaching ₹1,430 levels. It hit a new high of ₹1,489.8 on Monday. Despite the contract facing a minor correction on Tuesday, the overall direction is pointing upwards.
Traders can consider initiating fresh long position in nickel futures on the MCX with stop-loss at ₹1,420. On the upside, the contract is likely to cross over ₹1,500 and touch ₹1,530 in the near-term.
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