Nickel prices likely to trade weak only as the threat of huge over-supply will act as a drag on nickel from now on. Jinchuan Group cut ex-works nickel prices by RMB 7,000/mt to RMB 187,000/mt last Friday, and spot prices slipped in response. Mainstream traded price in the Shanghai nickel spot market fell to RMB 188,000/mt.Nickel has touched a low of Rs 1103.7 a kg after opening at Rs.1105.9, and last traded at Rs 1110.9.For today market is looking for the support at 1103.7, a break below could see a test of 1096.6 and where as resistance is now likely to be seen at 1118, a move above could see prices testing 1125.2. Spread between nickel MAY & JUN contracts yesterday ended at 10.20. Spread yesterday traded in the range of 10.20 - 15.9.

Trading Ideas:

Nickel trading range is 1096.6-1125.2.

Nickel prices likely to trade weak only as the threat of huge over-supply likely drag prices down

Nickel is having resistance at 1118 and support at 1102 level.

Spread between nickel MAY & JUN contracts yesterday traded in the range of 10.20 - 15.9.