Concerns that a strike at Xstrata Nickel’s mines, mill and smelter in the Sudbury area would further deplete the world’s nickel supply sent the price of the metal used to make stainless steel up by 28 cents to $8.71 on the LME. And the price could continue to rise if workers do go on strike. Nickel has touched a low of Rs 858.6 a kg after opening at Rs.870, and last traded at Rs 870.6.For today market is looking for the support at 860.10, a break below could see a test of 849.70 and where as resistance is now likely to be seen at 879.40, a move above could see prices testing 888.30.

Trading Ideas:

Nickel trading range is 850-885.

The price could continue to rise if workers do go on strike.

Support for nickel is seen at 866.40 and resistance is at 874.70 level.

Yesterday spread between nickel Jan and Feb month traded in the range of 0.80-1.25.

RISKY TRADER SELL NICKEL JAN BELOW 870 SL 878 TGT 866-863.50-860.20-856.MCX