Nickel settled down -0.76% at 832.20 finished lower on demand concerns in China after producer prices contracted more than expected and inflation grew less than forecast in December. The European Central Bank (ECB) decided to keep its benchmark interest rate unchanged at 0.25% and announced to maintain the easy monetary policy if need be. However, ECB President Mario Draghi made comments that the would stand ready to take further action if inflation in the bloc deteriorates. These comments fueled much speculation in markets, pushing up the US dollar index. The US initial jobless claims for last week fell by 15,000 to 330,000, the lowest level in a month, while the euro zone's December economic sentiment indicator increased to 100, the peak since July 2011. The consumer sentiment index and climate indices in service, business and industry sectors all were upbeat in the single currency bloc. China's December CPI rose by 2.5% from a year ago, matching expectations, but its PPI slid by 1.4% from a year earlier, a bigger fall than the estimated 1.3%, and declining for a 22nd month since March 2012, rekindling worries about China's metal demand. Euro zone December economic climate index recorded 100, its highest since July 2011, and US initial jobless claims last week decreased further, pointing to an improvement in the job market. But China's PPI continued to drop, with the manufacturing remaining sluggish. The market is focused its attention on US non-farm employment data released Friday. Technically market is under fresh selling as market has witnessed gain in open interest by 2.29% to settled at 14666 while prices down -6.4 rupee, now Nickel is getting support at 828.2 and below same could see a test of 824.3 level, And resistance is now likely to be seen at 838.2, a move above could see prices testing 844.3.

Trading Ideas:

Nickel trading range for the day is 824.3-844.3.

Nickel seen under pressure as China's PPI continued to drop, with the manufacturing remaining sluggish.

ECB Chief Draghi said central bank will keep interest rate low for quite some time if necessary, weighing on the market

The US Labor Department reported that initial jobless claims for last week continued to fall to 330,000, also lower than expected.