Stainless steel producers are trying to reduce their use of nickel in the production process because prices are becoming more volatile. Stainless steel production accounts for over 75% of all primary nickel consumption. Nickel prices on the LME have been volatile in recent weeks, rising $1,000 a metric ton in four days and the crashing the same amount in a single day. Nickel has touched a low of Rs 1035.8 a kg after opening at Rs.1038.1, and last traded at Rs 1045.9.For today market is looking for the support at 1036.9, a break below could see a test of 1027.8 and where as resistance is now likely to be seen at 1053.9, a move above could see prices testing 1061.8.

Trading Ideas:

Nickel trading range is 1027.8-1061.8.

Stainless steel producers are trying to reduce their use of nickel in the production process

Nickel is having resistance at 1053.90 and support at 1036.90 level.

Yesterday we have seen open interest fell by 409 and volume by 1354 lots