Nickel on MCX settled down -1.55% at 675.2 after LME prices slid 1.9 percent to $10130 with the market experiencing reduced interest and constant pressure from a multi-month high dollar. BHP Billiton Ltd., the world’s largest mining company, sees the nickel market swinging into deficit because of supply threats in the Philippines and growing demand from electric vehicles and stainless steel. Consumption is driving China's economic growth, but a further slowdown in income growth in the third quarter highlights the challenges to the country's transition away from manufacturing and heavy industry. The European Central Bank left ultra-loose monetary policy unchanged on Thursday but kept the door open to more stimulus in December, firmly shooting down any talk of tapering its 1.7 trillion euro asset-buying programme. U. S. home resales surged in September after two straight months of declines as first-time buyers stepped into the market, pointing to underlying momentum in the economy. Nickel has rebounded more than a third from the intraday low in February this year, which was the cheapest in more than a decade. Prices have been buoyed as the market awaits the final results from a nationwide audit in the Philippines, the world’s largest producer, which was ordered by President Rodrigo Duterte to ensure suppliers aren’t flouting environmental rules. According to the BMI, refined nickel prices will trade in the $10,000-11,000/tonne range in the next three months, due to temporary market deficit of 3.1 thousand tonnes driven by mine closures in the Philippines and eroded global stockpiles caused high Chinese imports. Technically now Nickel is getting support at 670.4 and below same could see a test of 665.6 level, And resistance is now likely to be seen at 684, a move above could see prices testing 692.8.

Trading Ideas:

Nickel trading range for the day is 665.6-692.8.

Nickel prices dropped after LME prices slid 1.9 percent to $10130 with the market experiencing reduced interest and constant pressure from a multi-month high dollar.

BHP Billiton Ltd., sees the nickel market swinging into deficit because of supply threats in the Philippines.

The Philippines accounts for about a quarter of global mined nickel supply, with most cargoes going to China.