Nickel on MCX settled down -3.79% at 710.90 as a result of a strengthening greenback, and tracking weakness from LME Nickel which tumbled 4.1 percent to close at $10,645, the biggest one-day fall in nearly two months, after further news from top ore exporter the Philippines. President Rodrigo Duterte said he hopes there would be a "happy compromise" between the mining industry and protecting the environment while his environment minister has asked for a halt of a second review of 28 mines that she ordered closed or suspended. US dollar gains strength it reduces demand for the commodity from holders of international currencies. The US dollar has appreciated on mounting support for the Fed to increase interest rates at its two-day policy-setting meeting next week. Even though the currency has experienced strength for months, it is up 1.5% over the last 30-days. Nickel prices soared last year, and have extended this strength into 2017, following the Philippines’ mining crackdown. The country’s environment minister, Regina Lopez, ordered the closure of over half of the country’s mines following the receipt of results of environmental inspections. According to the minister, these inspections found that the mines were not meeting regulations. When the inspections were announced there was skepticism that the country would actually go through with mining suspensions, not wanting to give up the revenue. Technically market is under fresh selling as market has witnessed gain in open interest by 42.17% to settled at 16105 while prices down -28 rupees, now Nickel is getting support at 702.1 and below same could see a test of 693.3 level, And resistance is now likely to be seen at 727.1, a move above could see prices testing 743.3.

Trading Ideas:

Nickel trading range for the day is 693.3-743.3.

Nickel prices dropped more than -3% on dollar firmness and after Indonesia issued details on export policy.

Earlier in the week prices gained as the impact of the potential nickel export ban in the Philippines.

Philippine President said on Tuesday he hopes there will be a "happy compromise" between the mining industry and protecting the environment.