Nickel yesterday traded with the negative node and settled -4.8% down at 1242.5 tracking LME nickel contract for delivery in three months opened at USD 28,700/mt and closed at USD 27,450/mt, down by USD 1,300/mt from a day earlier, with the highest price at USD 29,020/mt and the lowest price at USD 27,300/mt.LME nickel inventories were down by 474 mt to 129,384 mt. The Libya tension led to surge of oil price, and long positions of global crude oil contract increased significantly. Crude oil futures contract price hit a 2-year high, fueling expectation of inflation. Chinese government strives to control inflation rate in 2011 at around 4%, igniting concern that the largest metal consumer will further tighten its monetary policy. In this context yesterday nickel has touched the low of 1225.6 after opening at 1301.6, and finally settled at 1242.5. For today's session market is looking to take support at 1208.2, a break below could see a test of 1173.8 and where as resistance is now likely to be seen at 1294.3, a move above could see prices testing 1346.

Trading Ideas:

Nickel trading range is 1173.8-1346.

Nickel prices fell tracking weak trend at the London Metal Exchange.

Nickel looks to take support at 1230 and resistance is at 1254 level

Spread between nickel MAR & APR contracts yesterday traded in the range of 3.40 - 7.6.