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BL Research Bureau
The Nickel Futures contract traded on the Multi Commodity Exchange (MCX) has been coming down continuously since the beginning of this week. The contract has declined by over 3 per cent so far this week. This leaves the near-term outlook bearish. It is currently trading at ₹1,487 per kg. There is room for further fall in the coming days. Resistance will be in the ₹1,500-₹1,520 region. Immediate support is at ₹1,470. As long as the contract trades below ₹1,520, the chances are high for the contract to break below ₹1,470. Such a break can drag the contract lower to ₹1,420 in the coming days.
Traders can go short at current levels. Accumulate shorts on the rise at ₹1,505. Keep the stop-loss at ₹1,530. Trail the stop-loss down to ₹1,475 as soon as the contract moves down to ₹1,455. Move the stop-loss further down to ₹1,460 as soon as the contract falls to ₹1,440. Book profits at ₹1,425. The level of ₹1,420 is a strong trendline support.
There is a strong likelihood of the contract bouncing back from this support. Such a bounce can take the contract up to ₹1,470.
In case if the contract breaks below ₹1,420 it can come under more selling pressure. In such a scenario, the MCX-Zinc contract can tumble towards ₹1,370 thereafter.
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