China, the largest consumer of the metal, is expected to expand its demand for nickel 12% this year. However, the countries refined nickel imports in the first half fell 27% from a year ago, suggesting some smelters there were digging into their stocks. As China is heavily reliant on foreign nickel supplies, the country to start buying abroad again soon. Nickel has touched a low of Rs 1010.8 a kg after opening at Rs. 1019, and last traded at Rs 1015.2. For today market is looking for the support at 1005.2, a break below could see a test of 995.2 and where as resistance is now likely to be seen at 1030.8, a move above could see prices testing 1046.4.

Trading Ideas:

Nickel trading range is 995.2-1046.4.

China is expected to expand its demand for nickel 12% this year

Nickel is getting support at 1010 and resistance is at 1020.80.

Spread between nickel AUG & SEP contracts yesterday traded in the range of 6.30 - 8.9.