Nickel yesterday traded with the positive node and settled 0.15% up at 918.1 on short coverning, LME nickel market overnight opened at USD 17,750/mt, with the highest and lowest level of USD 17,975/mt and USD 17,662/mt, respectively. Finally, LME nickel market closed at USD 17,811/mt, up USD 84/mt from a day earlier. LME nickel market moved narrowly during the daytime, and inched up by USD 84/mt to close at USD 17,811/mt, as Spain issued a total of 3.178 euros of government bonds during the European and US trading hours, and as the yielding of 10-year bond fell below 6%, which eased market fears over the European debt issues. The higher-than-targeted bonds auctions in Spain, coupled with support from European Central Bank, sent a positive signal to the market. LME metals market overnight stabilized, but still lacked support from market fundamentals, with prices up slightly across the board. Spanish auction relief has eased market fears over the European debt issues, and so LME nickel market will likely edge up, with prices expected between  USD 17,500-18,500/mt. In domestic nickel market, prices will not stage large changes on Wednesday, with prices expected between RMB 127,500-132,000/mt. In yesterday's trading session nickel has touched the low of 910.5 after opening at 918.2, and finally settled at 918.1. For today's session market is looking to take support at 910.6, a break below could see a test of 903.2 and where as resistance is now likely to be seen at 925.3, a move above could see prices testing 932.6.

Trading Ideas:

Nickel trading range for the day is 903.23-933.

Nickel ended with gains as Spain issued a total of 3.178 euros of government bonds

China receives most of its imported nickel ore from Indonesia, China to sustain its nickel pig iron (NPI) production at 2011 levels.

Norilsk stock is under pressure because of the low nickel prices, which reacted to the negative Chinese data