Nickel futures maintain upward trend on short covering

Continuing its upward journey, nickel futures rose by Rs 2.10, or 0.21 per cent, to Rs 1,006 per kg, as traders indulged in covering-up pending positions, driven by pick up in demand at spot markets.

Expectations that the global demand for metals may pick up on improved prospects for the economic growth in the US also influenced the metal's prices in futures trade.

At the Multi Commodity Exchange counter, the nickel contract for delivery in September contract rose Rs 2.10, or 0.21 per cent, to Rs 1,006 per kg, with a turnover of 5,725 lots.

The metal for delivery in current-month August also gained Rs 1.30, or 0.13 per cent, to Rs 995.80 per kg, with a turnover of 9,879 lots.

Analysts said short covering of positions by speculators ahead of monthly expiry, pick up in spot demand, primarily from alloy-makers, also influenced the nickel prices at futures market here.

Besides, hopes that demand for the metal may rise on improved prospects of economic growth in the US, too influenced the nickel futures here, they said.