Nickel futures advanced a second straight day in the direction of most two-day ahead in five months, on speculation that lower prices will drive consumer buying and minimization of production of a lower grade alternative.
On the domestic front, MCX nickel November delivery prices rose by 0.78 per cent or Rs 7.50 to Rs 965.10 per kg in futures trade today as the participants created speculative positions, driven by strong overall trend . Moreover, the growing demand for alloy-makers in the domestic spot markets also affected metals prices.
"We've seen a good physical purchase interest after the recent dealing prices falls. And investors are now redirecting on the basics including ore export ban in Indonesia." metals experts said.
On global front, Nickel for delivery in three months at the LME rose 1.9 percent to $ 15.840 a tonne in Hong Kong, bringing gains in last two days to 7.1 percent, the largest from May 19. The prices yesterday dropped to a minimum of $ 14,690, the weakest since March. The metal is up 13 percent this year as the constraints of Indonesia will conduct a one-month strike starting from next week Nov. 6.
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