According to forecasts the growth of nickel demand will be caused by stainless steel world production volume, which can reach 27 million tonnes in 2010 and almost 30 million tonnes in 2011. Primary nickel global output in 2010 can amount 1.4 million tonnes, the excess of nickel in world market can reach 75,000 tonnes. Nickel has touched a low of Rs 920.6 a kg after opening at Rs.931.5, and last traded at Rs 941.6.For today market is looking for the support at 926.7, a break below could see a test of 911.9 and where as resistance is now likely to be seen at 950.3, a move above could see prices testing.950.3, a move above could see prices testing 959.1.

Trading Ideas:

Nickel trading range is 911.9-959.1.

Global nickel consumption seen at 7pct increase in 2010

Nickel is getting support at 936.80 and resistance is at 945.60.

Yesterday we have seen that open interest at 6764 and volume at 47878 lots.

SELL NICKEL FEB @ 945-948 SL 956.50 TGT 940.80-936.50-932.80-927.MCX