Nickel yesterday traded with the negative node and settled -0.33% down at 946.80 as uncertainty about the US fiscal talks weighed on the outlook for industrial metals. Negotiations to avert $600 billion worth of tax hikes and spending cuts due to take effect in the new year have dragged on, with some US lawmakers voicing concerns on Sunday that the country would go over the "fiscal cliff" in nine days. But most risk assets were little changed on the last trading week of the year as most global investors bet Washington would reach an agreement to prevent the world's top economy from slipping into another recession. Market players remained focused on developments surrounding the fiscal cliff in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday. Without a deal, the US could fall back into recession and drag much of the world down with it. In yesterday's trading session nickel has touched the low of 943.1 after opening at 950.3, and finally settled at 946.8. For today's session market is looking to take support at 941.1, a break below could see a test of 935.4 and where as resistance is now likely to be seen at 954.4, a move above could see prices testing 962.4.

Trading Ideas:

Nickel trading range for the day is 935.47-962.

Nickel dropped after data showed sharp decline of US CCI for December which weighedon price.

Earlier favorable profit data for China's industrial companies helped shore up investors' anticipation over demand

US economic data was mixed, with the manufacturing index in Midwest climbing in November and US initial jobless claims dropping last week.