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.
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.