Nickel settled down -2.01% at 1158 on speculation supply of the metal is ample for now, easing concern about a potential shortage after Indonesia barred exports of raw ores in January. However downside seen limited after strong U. S. jobs data boosted hopes that economic recovery would spur demand for industrial metals.

Production of nickel will exceed demand by 50,000 metric tons this year before a deficit in 2015. Prices surged as much as 56 percent in 2014 and are still up 40 percent. Indonesia, the world's largest nickel-mining nation, will hold a presidential election on July 9. Chinese manufacturing expanded at this year's fastest pace in June, official data showed. Nickel raced to a high of $21,625 in May, but has since struggled to regain those levels as investors realised that no shortages had yet emerged due to high levels of stocks.

Employment growth jumped in June while the jobless rate closed in on a six-year low, showing the U. S. economy was rebounding after a slump at the start of the year. That added to optimism spurred by data this week showing an upbeat outlook for global manufacturing, especially in China.

The price was also being supported ahead of presidential election in Indonesia, where a new government is expected to reaffirm the ore export ban. Technically market is under long liquidation as market has witnessed drop in open interest by -18.89% to settled at 6545 while prices down -23.8 rupee, now Nickel is getting support at 1148.7 and below same could see a test of 1139.3 level, And resistance is now likely to be seen at 1175.4, a move above could see prices testing 1192.7.

Nickel trading range for the day is 1139.3-1192.7.

Nickel dropped on speculation supply of the metal is ample for now, easing concern about a potential shortage.

However downside seen limited after strong U. S. jobs data boosted hopes that economic recovery would spur demand.

Production of nickel will exceed demand by 50,000 metric tons this year before a deficit in 2015.

Warehouse stock for Nickel at LME was at 304536mt that is down by -402mt.

SELL NICKEL JULY @ 1165 SL 1188 TGT 1145-1124.MCX