Nickel settled down -1.89% at 1159.1 depressed by worse-than-expected inflation data from China.  In China, CPI rose 2.3% in June from a year ago, while PPI fell at a smaller rate of 1.1%, which, however, failed to boost financial markets. Shanghai followed Beijing on Wednesday to allow more luxury real estate into the market, in a sign that some cities in China are loosening restrictive policies aimed at cooling an overheated property markets. The Federal Reserve revealed in the minutes of its June meeting released Wednesday that the US economy would have gathered pace in the second quarter and that the country’s labor markets are also expected to be stable. Nevertheless, some US Fed officials were concerned about persistently low inflation despite some recent higher readings as well as about declines in housing starts. Meanwhile, the US Fed plans to curtail USD 15 billion in its monthly bond purchases in October, with an optimistic view of the country’s economy. LME nickel prices opened at USD 19,670/mt overnight, with the high end of the price range USD 19,850/mt, and finding support at USD 19,384/mt. Finally, LME nickel prices closed at USD 19,400/mt, down USD 326/mt from the previous trading day. LME nickel inventories were up 1,548 mt to 306,828 mt.  Technically market is under long liquidation as market has witnessed drop in open interest by -19.08% to settled at 5967 while prices down -22.3 rupee, now Nickel is getting support at 1150.1 and below same could see a test of 1141.2 level, And resistance is now likely to be seen at 1175.8, a move above could see prices testing 1192.6.

Trading Ideas:

Nickel trading range for the day is 1141.2-1192.6.

Nickel settled down depressed by worse-than-expected inflation data from China.

In China, CPI rose 2.3% in June from a year ago, while PPI fell at a smaller rate of 1.1%.

Technically market is under long liquidation as market has witnessed drop in open interest by -19.08% to settled at 5967.