Nickel settled -0.71% down at 965.50 as pressure seen after the update that global nickel surplus may rise to 5-year high on new mine projects. A global nickel surplus may expand for a third year to the highest level since 2008 as supply from new mining projects outweighs China's demand growth, Japan's top producer said. Supply will likely exceed demand by 60k mts in 2013, said Toru Higo. Supply outstripped demand by 40,000 tons this year and 22,000 tons in 2011, he said. Nickel can get support as helped by a stronger euro on expectations Spain would seek a bailout to rescue its economy, although gains were capped by uncertainty about global growth, while trading volumes were low as China remained on holiday. In the last few weeks central banks in the US, EU and Japan have moved to loosen their monetary policy, in an attempt to stimulate economic growth. Investors are likely to look ahead to non farm payrolls data from the US, due on Friday, for indications of a recovery in the country's labour market. Sentiment surrounding the US labour market was boosted in the previous session after data showed private sector hiring rose by a better than expected number in September. For today's session market is looking to take support at 959.5, a break below could see a test of 953.5 and where as resistance is now likely to be seen at 974.2, a move above could see prices testing 982.9.

Trading Ideas:

Nickel trading range for the day is 953.57-983.

Nickel settled down as pressure seen after the update that global nickel surplus may rise to 5-year high on new mine projects.

Investors are now waiting for critical jobs data from US for indications on whether its latest stimulus measures are having the desired effect on the labour market.

Report showed that the number of Americans filing new claims for unemployment benefits rose only slightly last week