Nickel yesterday traded with the positive node and settled 0.41% up at 1319.6 with support from LME nickel prices which opened at USD 29,150/mt and closed at USD 29,400/mt, up by USD 300/mt from a day earlier, with the highest price at USD 29,425/mt and the lowest price at USD 29,050/mt. LME nickel prices fluctuated widely between USD 29,100-29,400/mt, and hit a 34-month high. Supported by the news that Vales halted production at its Copper Cliff smelter, nickel is the only base metal recording down in inventories at LME. Turbulence in Arab countries curbed investors' risk appetite. In addition, market concerned that China's recent monetary tightening policy may dampen demand for base metals. Tension in the Middle East will curb industrial production to certain extent, and will weigh base metal prices to certain extent in the short term. For today's session market is looking to take support at 1308.7, a break below could see a test of 1297.7 and where as resistance is now likely to be seen at 1329.2, a move above could see prices testing 1338.7.

Trading Ideas:

Nickel trading range is 1297.7-1338.7.

Nickel prices yesterday gained with support from LME nickel prices

Nickel looks to take support at 1304 and resistance is at 1330 level

Spread between nickel FEB & MAR contracts yesterday traded in the range of 2.80 - 5.7.

YESTERDAY LME STOCK FOR NICKEL CAME DOWN  BY -174