Nickel settled down -0.71% at 922.9 as longs liquidated positions after Markit manufacturing PMI for US fell short of the 54 expected. Earlier in the day upbeat HSBC's flash China manufacturing PMI for August boosted market sentiment. Manufacturing in the euro zone in August expanded at the fastest pace in more than two years. Germany's private sector expanded in August at its fastest rate since January. The US dollar index closed up for a second trading day on growing expectations of QE3 wind-down, also putting downward pressure on prices. Although France's August manufacturing PMI was below 50 at 49.7, manufacturing PMI in Germany and the euro zone both exceeded forecasts and rose above 50. The euro zone's manufacturing PMI jumped to a 26-month high of 51.3, while Germany's manufacturing PMI rose to its highest since July 2011 of 52.0. These upbeat figures suggest recovery in the European economy and that the euro zone has basically got rid of recession, pushing European stock markets and base metals higher. HSBC's flash China manufacturing PMI for August climbed to 50.1 from 47.7. The output sub-index was 50.6, a 3-month high. New orders increased, but new export orders shrank considerably. This indicates the rally in China's manufacturing PMI is due chiefly to the central government's fine-tuning of its policy. Technically market is under long liquidation as market has witnessed drop in open interest by -7.15% to settled at 3884 while prices down -6.6 rupee, now Nickel is getting support at 913.3 and below same could see a test of 903.6 level, And resistance is now likely to be seen at 940.1, a move above could see prices testing 957.2.

Trading Ideas:

Nickel trading range for the day is 903.6-957.2.

Nickel settled lower as longs liquidated positions after Markit manufacturing PMI for US fell short of the 54 expected

Data showing Germany's private sector expanded in August at its fastest rate since January was also supportive

Clouding the outlook for metals is uncertainty over the impact of the U. S. Federal Reserve's plans to start tapering its stimulus measures soon.