Nickel yesterday traded with the positive node and settled 4.24% up at 1166.6. “With coal supplies getting squeezed due to flooding, the Chinese will have to return to higher-grade steels that utilize refined nickel,” RBC Capital Markets said in a report. Some support had been seen from the LME stock also which came down by -942mt, the total stock at LME is now at 135864mt. In yesterday's trading session nickel has touched the low of 1120 after opening at 1120, and finally settled at 1166.6. For today's session market is looking to take support at 1134.6, a break below could see a test of 1102.6 and where as resistance is now likely to be seen at 1184, a move above could see prices testing 1201.4.

Trading Ideas:

Nickel trading range is 1102.6-1201.4.

Nickel rose 4.5 percent, the most since late June, to $25,800 a ton in London.

Prices gained after six weeks of rains and flooding in Australia boosted demand for the metal.

Renewed concern over the Euro debt crisis and low buying interest from China can weigh prices

BUY NICKEL JAN @ 1145-1152 SL 1140 TGT 1160-1168-1178.MCX

YESTERDAY LME STOCK FOR NICKEL CAME DOWN  BY -768