Nickel yesterday traded with the positive node and settled 0.42% up at 952.60 as strong US housing market data bolstered confidence that economic growth and fuel demand were accelerating. The rebound came on short-covering and expectations that a meeting of the Federal Reserve later in the week will retain US short-term interest rates at exceptionally low levels until the unemployment rate falls to 6.5 percent, inflation permitting. Market participants now looked ahead to Wednesday's preliminary data on US fourth quarter economic growth, as well as Friday's US nonfarm payrolls report, as markets attempt to gauge the strength of the US economic recovery. The Federal Reserve's policy-setting meeting on Wednesday will also be in focus, as markets search for clues over the future of the central bank's ultra-loose monetary policy. Also, China will release its official manufacturing data for January at the end of the week, providing investors with another chance to see whether the recovery in the world's second largest economy remains on track. In yesterday's trading session nickel has touched the low of 942.2 after opening at 946.7, and finally settled at 952.6. For today's session market is looking to take support at 945.3, a break below could see a test of 938 and where as resistance is now likely to be seen at 956.8, a move above could see prices testing 961.

Trading Ideas:

Nickel trading range for the day is 938-961.

Nickel gained as US dollar index dipped considerably on investors' upbeat attitudes towards the Fed's upcoming policy meeting

Germany's Gfk consumer confidence index for February rose to 5.8, higher than 5.7 expected and previous reading.

Although economic growth in Germany was slow, optimistic expectation in the euro zone boosted consumer confidence.