Nickel yesterday traded with the negative node and settled -0.15% down at 954.6 tracking LME nickel prices initially moved stably after opening at USD 19,050/mt, but later fell to test USD 18,775/mt. Boosted by upbeat economic data from the US, LME nickel prices surged to USD 19,023/mt and the tail of the trading, up USD 143/mt from a day earlier. In the Shanghai nickel spot market, spot nickel prices tracked LME nickel prices to drift lower after a low opening, but transactions were moderate. Jinchuan Group cut ex-works nickel prices by RMB 3,000/mt to RMB 135,000/mt.The Greek CDS auction was completed, settling at 21.5%, or a discount of 78.5% to face value, reducing market concern over implementation of the second round Greek bailout plan. In response, the euro gained upward momentum and advanced slightly. In addition, lower-than-expected readings on US manufacturing exerted downward pressure on the US dollar. However, market concern over financial conditions in Portugal and Spain capped gains of LME base metal prices. No negative news is expected to be released from the euro zone in the short term, which will support euro. At present, market sentiment is positive, and impact from Fed’s interest rate meeting is waning. In addition, the dollar is weak in the short term. For today's session market is looking to take support at 946.7, a break below could see a test of 938.9 and where as resistance is now likely to be seen at 960.1, a move above could see prices testing 965.7.

Trading Ideas:

Nickel trading range for the day is 938.93-966.

Nickel downside was limited tracking LME prices boosted by upbeat economic data from the US

Jinchuan Group cut ex-works nickel prices by RMB 3,000/mt to RMB 135,000/mt.

Lower-than-expected readings on US manufacturing exerted downward pressure on the US dollar