First Quantum Minerals Ltd. said it has signed a deal with BHP Billiton to buy the Ravensthorpe nickel operation in Australia for US$340 million. Ravensthorpe was completed in 2007; however operations were suspended in January due to low nickel prices.

Nickel has touched a low of Rs 750.7 a kg after opening at Rs. 756.1, and last traded at Rs 767.1. For today market is looking for the support at 752.7, a break below could see a test of 738.3 and where as resistance is now likely to be seen at 779.5, a move above could see prices testing 791.9.

Trading Ideas:

NICKEL TRADING RANGE IS 745-790.

FIRST QUANTUM TO BUY NICKEL OPERATION IN AUSTRALIA FOR US$340 MILLION

SELL NICKEL @ 770-772 SL 776.50 TGT 766.80-762.50-757.60. MCX

SPREAD BETWEEN NICKEL DEC & JAN CONTRACTS YESTERDAY ENDED AT 5.60.

RESISTANCE FOR NICKEL IS AT 771.60 AND SUPPORT IS AT 762.30.