Nickel yesterday settled up 1.03% at 846.1 tracking firmness in LME nickel prices after inventories fell by 486 mt. Euro zone PMI climbed to 50.4, and pushed down the US dollar index, and China's poor economic data is expected to result in stimulus policies. In this context, LME nickel prices climbed. US annualized new home sales in June was 49.7, better than the 48.2 expected, which enhanced speculations of an end to QE3 and boosted demand for base metals. HSBC's flash China manufacturing PMI for July was worse than forecasts, sending commodity and stock markets plunging. Later, a spokesman of the Ministry of Industry & Information Technology (MIIT) said the MIIT and National Development & Reform Commission (NDRC) are working on measures to invigorate enterprises. This indicates the Chinese government may introduce more economic stimulus in the second half of the year, easing market worries and helping base metals prices rally. Technically market is under fresh buying as market has witnessed gain in open interest by 8.37% to settled at 14500 while prices up 8.6 rupee, now Nickel is getting support at 835.4 and below same could see a test of 824.7 level, And resistance is now likely to be seen at 852.2, a move above could see prices testing 858.3.

Trading Ideas:

Nickel trading range for the day is 824.7-858.3.

Nickel yesterday settled up tracking firmness in LME nickel prices as support seen after inventories fell by 486 mt.

The Commerce Department reported U. S. new home sales jumped 8.3% to 497,000 units, their highest level since May 2008.

US annualized new home sales in June was 49.7, better than the 48.2 expected, which enhanced speculations of an end to QE3