The outlook for the nickel market is “strong” on the back of growing stainless steel consumption, currently limited supply and the risk attached to new projects. While nickel, the second-strongest performer on the LME this year, may come under pressure from new supplies, projects using high pressure acid leaching technology, such as the shuttered Ravensthorpe project in Australia formerly owned by BHP Billiton Ltd., have proven to be “risky” and prone to “failure,” . Nickel has touched a low of Rs 995.6 a kg after opening at Rs.998.6, and last traded at Rs 996.9.For today market is looking for the support at 994.7, a break below could see a test of 992.6 and where as resistance is now likely to be seen at 999.9, a move above could see prices testing 1003.

Trading Ideas:

Nickel trading range is 992.6-1003.

The outlook for the nickel market is “strong” on the back of growing stainless steel consumption

Nickel is having resistance at 1005.20 and support at 985.40 level.

Spread between nickel NOV & DEC contracts yesterday traded in the range of 10.00 - 11.4.