Nickel futures succumb to profit-taking, weak global cues

Nickel futures traded at Rs 15.70, or 1.56 per cent lower today as speculators reduced their positions after yesterday's rally amid a weak global trend. Weak demand for the metal at domestic spot markets also put pressure on the nickel prices in futures market here.

At the Multi Commodity Exchange counter, nickel for delivery in July contract traded Rs 15.70, or 1.56 per cent, down at Rs 991.30 per kg with an open interest of 157 lots.

The metal for delivery in May also fell sharply by Rs 12.90, or 1.30 per cent, to Rs 982.90 per kg with an open interest of 9,800 lots. At the London Metal Exchange, nickel dipped $695 or 3.14 per cent to $21,450 per tonne.

Market analysts said apart from profit-taking by speculators after yesterday's recovery, weak trend in base metals at the London Metal Exchange as the euro dipped against the US dollar to a four-year low, weighed on the nickel prices.

Slowing Chinese economy, the largest consumer of the industrial metals and sluggish demand from domestic alloy makers at the spot market was also responsible for the fall in metal futures prices.