London Metal Exchange (LME) nickel inventory levels are down 20% from their peak in February and the latest International Stainless Steel Forum (ISSF) production data suggests that the nickel market will remain in deficit for 2010 and 2011. Nickel has touched a low of Rs 897 a kg after opening at Rs. 898.5, and last traded at Rs 905. For today market is looking for the support at 897.5, a break below could see a test of 890.1 and where as resistance is now likely to be seen at 911.9, a move above could see prices testing 918.9.

Trading Ideas:

Nickel trading range is 890.1-918.9.

Nickel LME inventories fall sharply, putting nickel miners on investor radar

Nickel is getting support at 897.80 and resistance is at 910.20

Spread between nickel JUN & JUL contracts yesterday traded in the range of 6.60 - 10.3.

SELL NICKEL JUNE BELOW 900 SL 908.80 TGT 895.50-890.80-886. MCX