Nickel settled down -1.05% at 896.3 as Syrian situation took center stage, with risk aversion sentiment dominating the market. The market is also focusing on the nearing scaling back of QE3. In this context, the US dollar index fell below 82, but LME nickel prices opened at USD 14,070/mt, dipping to USD 13,826/mt and closing at USD 13,940/mt. China's CPI rise for August was reported in line with market projection, indicating inflation remained reasonably under control. China's PPI decline narrowed, a result of government's efforts in maintaining stable growth. The People's Bank of China President Zhou Xiaochuan published an article expressing that China should construct multi-level capital market, with preferred stocks playing an important role. The issue of preferred stocks eased market concerns of bank equity refinancing, and reflecting Chinese government is deepening financial reform; China's CPI in August rose 2.6% YoY, lower than the forecast of 2.7%, and PPI dropped by 1.6% MoM, compared to a drop of 1.7% in July, and rising for the first time since April on a MoM basis. Market confidence toward stabilization in Chinese economy strengthened. China's foreign direct investment in 2012 rose by 17.6% YoY, to USD 87.8 billion, hitting a record high. Technically market is under long liquidation as market has witnessed drop in open interest by -4.93% to settled at 4491 while prices down -9.5 rupee, now Nickel is getting support at 891.9 and below same could see a test of 887.5 level, And resistance is now likely to be seen at 903.6, a move above could see prices testing 910.9.

Trading Ideas:

Nickel trading range for the day is 887.5-910.9.

Nickel settled down as Syrian situation took center stage, with risk aversion sentiment dominating the market.

China's foreign direct investment in 2012 rose by 17.6% YoY, to USD 87.8 billion, hitting a record high.

The market is also focusing on the nearing scaling back of QE3.