The world output of nickel in 2009 shrunk largely an extent of its reduction in comparison with that forecasted at the beginning of 2009 and, consequently, the excessive quantity of nickel produced in 2009 had caused to increase LME nickel stocks and also to be absorbed by more imports of nickel into China in 2009. LME nickel stocks were 78,800 tonnes at the beginning of 2009 but increased to 162,000 tonnes as of the end December of 2009. Nickel has touched a low of Rs 1005.6 a kg after opening at Rs.1022.1, and last traded at Rs 1017.8.For today market is looking for the support at 1004, a break below could see a test of 990.1 and where as resistance is now likely to be seen at 1033.3, a move above could see prices testing 1048.7.

Trading Ideas:

Nickel trading range is 990.1-1048.7.

Global nickel output in 2009 down 4pct YoY

Nickel is getting support at 1012.20 and resistance is at 1023.80.

LME nickel stocks rose by 82300 tonnes to 162000 tonnes from Jan to Dec 2009.

SELL NICKEL MAR @ 1028-1032 SL 1042 TGT 1022-1016.50-1012.MCX