Nickel yesterday settled down by -1.68% at 827.30 tracking LME nickel price which overnight opened at USD 15,340/mt, finally closed at USD 15,124/mt, down USD 221/mt as pressure seen after Chinese stocks markets dropped. Germany's May ZEW climate index was 36.4, falling short of market expectations, pushing up the US dollar index and dragging down LME nickel prices, finally closing at USD 15,124/mt, down USD 221/mt. The continuous improvement in the US labor market strengthens market confidence over its economic recovery, and this will generate more support for the exit from existing easing monetary policy. The Federal Reserve interest rate meeting to be held in mid June may send a clear signal to the market. Before this, metals markets will be sensitive to relative news, and any unexpected economic data. Philadelphia Fed President Charles Plosser said the Federal Reserve's reputation may suffer if the existing asset purchasing program will not be cut next month in response to recent improvement in economy. The Eurozone industrial output rose a better-than-expected 1.0% in March, the largest gain since July 2011. The encouraging data boosted market sentiment over the economic outlook. However, the German ZEW economic climate index fell unexpected to 8.9 in May, sending the euro off from highs. Now technically market is under long liquidation as market has witnessed drop in open interest by -0.04% to settled at 16989 while prices down -14.1 rupee, now Nickel is getting support at 822.6 and below same could see a test of 817.9 level, And resistance is now likely to be seen at 835.9, a move above could see prices testing 844.5.

Trading Ideas:

Nickel trading range for the day is 817.97-845.

Nickel dropped after data showed Germany's May ZEW climate index was 36.4, falling short of market expectations

The continuous improvement in the US labor market strengthens market confidence over its economic recovery

The Federal Reserve interest rate meeting to be held in mid June may send a clear signal to the market.