Nickel yesterday traded with the positive node and settled 0.13% up at 954.70 tracking LME nickel which opened at $18,675/mt and closed at $18,322/mt, down $378/mt from a day earlier, with the intraday high at $18,718/mt and the low at $18,225/mt. During China's National Day holiday, LME nickel prices hit a high at $18,920/mt. However, the lingering debt crisis in Spanish and Greece weighed down LME nickel prices to close at $18,322/mt last Friday, down $378/mt from a day earlier and down $78/mt from pre-holiday level. LME base metal prices largely fluctuated narrowly as no significant progress was reported on the Greece and Spanish debt crisis. Data from the US Department of Labor revealed that the US nonfarm employment data for August was up 142,000, which was higher than market expectation. Meanwhile, the US unemployment rate rapidly to 7.8%, far lower than 8.2% expected, the lowest since January 2009. The positive unemployment data dampened market expectation that the Fed Reserve will introduce more monetary policy to boost economy. In response, the US dollar advanced. For today's session market is looking to take support at 952.5, a break below could see a test of 950.4 and where as resistance is now likely to be seen at 955.9, a move above could see prices testing 957.2.

Trading Ideas:

Nickel trading range for the day is 950.37-957.

Nickel settled flat as no significant progress was reported on the Greece and Spanish debt crisis.

Euro will come under downward pressures amid market concerns over Greek aid delay and worries over Spanish debt.

The final US Markit manufacturing PMI for September, however, hit the lowest level since September 2009.