Nickel settled down -0.2% at 1124.1 as seen under pressure after LME nickel inventories grew to 312,700 mt, and news that two Indonesia-based companies are allowed to export concentrate with paying export tax triggered market concerns whether Indonesia will insist on the ban on the export of nickel ore. Although the US Conference Board Consumer Confidence Index posted an unexpected rise in July to its highest since October 2007, market failed to gain support therefrom.  Escalating geopolitical chaos caused risk aversion to grow, weighing down base metals prices. Fed's policy meeting decision, US ADP's employment as well as Q2 GDP data will be the focus of markets, when combined with rising geopolitical turmoil, risk aversion will grow, weighing on base metals prices.  The Standard & Poor’s/Case-Shiller 20-city home price index, released Tuesday, rose at the lowest rate of 9.3% in May since February 2013, shy of the expected 10% increase. Market participants thus predicted that the US property market faced headwinds in recovering. The Conference Board’s consumer confidence index for July came in at 90.9, hitting a refreshed high last seen in October 2007 and soundly beating the estimated 85.4. The index has been increasing for a third straight month, pointing to the robust labor market and market optimism towards the US economic outlook. The US Federal Reserve is expected to release the minutes of its latest interest rate meeting late on Wednesday, which should be in line with expectations. Technically market is under long liquidation as market has witnessed drop in open interest by -17.18% to settled at 4200 while prices down -2.3 rupee, now Nickel is getting support at 1115.8 and below same could see a test of 1107.5 level, And resistance is now likely to be seen at 1128.7, a move above could see prices testing 1133.3.

Trading Ideas:

Nickel trading range for the day is 1107.5-1133.3.

Nickel dropped on news that two Indonesia-based companies are allowed to export concentrate with paying export tax triggered market concerns.

US Conference Board Consumer Confidence Index posted an unexpected rise in July to its highest since October 2007, market failed to gain support therefrom.

The US Federal Reserve is expected to release the minutes of its latest interest rate meeting late on Wednesday, which should be in line with expectations