Australia's second-largest nickel producer, Minara Resources Ltd, reported record 2009 nickel output at its Murrin Murrin mine as demand for the steel-making ingredient showed signs of recovery. Nickel has touched a low of Rs 856.5 a kg after opening at Rs. 862.8, and last traded at Rs 884.1.

For today market is looking for the support at 865.20, a break below could see a test of 846.30 and where as resistance is now likely to be seen at 894.20, a move above could see prices testing 904.30.

Trading Ideas:

Nickel trading range is 865-905.

Minara output hits record as nickel price rises

International Nickel Study Group's estimate that the market was in a 3,000 ton deficit in November.

Support for nickel is seen at 879.80 and resistance is at 889.20 level.

SELL NICKEL JAN BELOW 878 SL 889.40 TGT 873.40-869-864. MCX