Nickel yesterday traded with the negative node and settled -0.13% down at 848.2. Some pressure had been seen from the LME stock also which came down by 564mt, the total stock at LME is now at 162270mt. In yesterday's trading session nickel has touched the low of 845.5 after opening at 847.4, and finally settled at 848.2. For today's session market is looking to take support at 846.2, a break below could see a test of 844.20 and where as resistance is now likely to be seen at 849.5, a move above could see prices testing 850.80. Spread between Nickel JAN & FEB contracts yesterday ended at 5.60. Spread yesterday traded in the range of 5.10 - 5.90.

Trading Ideas:

Nickel trading range is 820-865.

Nickel yesterday traded lower along with other weak base metal prices

Support for nickel is seen at 845.20 and resistance is at 852.60 level.

China’s implied demand for nickel up almost 45 percent

BUY NICKEL JAN @ 844-846 SL 839.10 TGT 849.20-853.60-857.MCX