In 2009, China's stainless steel production increased by 26.8% to 8.8mln tons. In contrast, China's stainless steel apparent consumption rose by 32% to 8.22mln tons. The oversupply was 600,000 tons, which will affect the nickel demand in short-term. Nickel has touched a low of Rs 977 a kg after opening at Rs.977, and last traded at Rs 987.For today market is looking for the support at 976.3, a break below could see a test of 965.7 and where as resistance is now likely to be seen at 998.3, a move above could see prices testing 998.3, a move above could see prices testing 1009.7.

Trading Ideas:

Nickel trading range is 965.7-1009.7.

China's 2009 oversupply stainless steel will affect nickel demand

Nickel is getting support at 982.80 and resistance is at 992.60.

Spread between nickel MAR & APR traded in the range of 0.6-4.1.

SELL NICKEL MAR BELOW 983.50 SL 989.80 TGT 979.50-974.20-968.MCX