Nickel prices jumped to Rs 1,150 per kg on September 1 as participants increased their long position as seen by the open interest. The base metal benefitted from the persistent weakness in the US dollar and positive economic data from China.
Chinese manufacturing activities in August, expanded at the fastest pace in 10 years, improved outlook for the industrial metal.
Nickel stocks at SHFE warehouses fell by 786 tonnes last week, while LME stocks rose 24 tonnes.
In the futures market, nickel for September delivery touched an intraday high of Rs 1,152.70 and a low of Rs 1,141.90 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 1,027.50 and a high of Rs 1,152.70.
The Relative Strength Index (RSI) is trading at 73 and forming higher highs higher low which is a bullish sign for prices.
At 1312 (GMT), the base metal futures was up 2.33 percent quoting at $15,685 per tonne in London.