Nickel yesterday settled flat 0.04% at 837.5 as downstream buyers purchasing was muted. Euro zone consumer morale hitting a nearly two-year high in July also helped market sentiment. Jinchuan raised ex-works prices again by RMB 500/mt, to RMB 100,000/mt, but did not boost the market effectively. The US house price index in May was reported up 0.7%, worse than the 0.8% growth expected, and Richmond Fed manufacturing index for July was at an unexpected low of -11, missing forecast, adding to market concerns over the US manufacturing. Thus, US dollar fell below 82, while the euro strengthened. Downbeat figures caused the US dollar index to drop for a third straight day, lending support to base metals prices. Any potential towards a further rise in copper prices should be limited due to a lack of buying. The local media in China reported that the government is looking to increase investment in railway projects as it aims to ensure annual economic growth does not sink below 7 percent. China consumes around 40 percent of the world's copper. Economic growth in the country slowed to 7.5 percent in the second quarter, from 7.7 percent in the first quarter, and investors fear it slipping further still this year. Technically market is under short covering as market has witnessed drop in open interest by -2.96% to settled at 13380 while prices up 0.3 rupee, now Nickel is getting support at 832.6 and below same could see a test of 827.7 level, And resistance is now likely to be seen at 842.2, a move above could see prices testing 846.9.

Trading Ideas:

Nickel trading range for the day is 827.7-846.9.

Nickel yesterday settled flat as downstream buyers purchasing was muted.

Euro zone consumer morale hitting a nearly two-year high in July also helped market sentiment.

Jinchuan raised ex-works prices again by RMB 500/mt, to RMB 100,000/mt, but did not boost the market effectively.