The nickel market overall has seen strong growth in demand. For the period 2000 to 2006, when demand peaked, consumption at the world level increased at an annual average rate of 3.8%.Demand for nickel is predominantly driven by stainless steel production, which accounts for around two-thirds of total nickel consumption.

Nickel has touched a low of Rs 849.3 a kg after opening at Rs. 849.7, and last traded at Rs 851. For today market is looking for the support at 849.50, a break below could see a test of 848.00 and where as resistance is now likely to be seen at 852.20, a move above could see prices testing 853.40.

Trading Ideas:

Nickel trading range is 830-870.

The nickel market overall has seen strong growth in demand.

Demand for nickel is predominantly driven by Steel production, which accounts for around 2/3rd of consumption.

Spread between nickel JAN & FEB contracts yesterday traded in the range of 5.70-6.70.

BUY NICKEL JAN @ 848-852 SL 841.80 TGT 855.80-859.20-864.MCX