Nickel settled down -1.97% at 859.30 on speculation that rising borrowing costs in emerging markets will damp economic growth, eroding demand for industrial metals. Pressure mounted after China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January, down from a preliminary reading of 49.6 and compared to 50.5 in December. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Meanwhile, the Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision. The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance". The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases. The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further. The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales. Market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. Technically market is under long liquidation as market has witnessed drop in open interest by -30.26% to settled at 2604 while prices down -17.3 rupee, now Nickel is getting support at 852.3 and below same could see a test of 845.2 level, And resistance is now likely to be seen at 872.2, a move above could see prices testing 885.

Trading Ideas:

Nickel trading range for the day is 845.2-885.

Nickel ended with losses as concerns over demand from China after data showed manufacturing activity contracted this month.

The HSBC purchasing managers' index came in at 49.5 in January, from 50.5 in December.

Technically market is under long liquidation as market has witnessed drop in open interest by -30.26% to settled at 2604