Nickel settled down -2.4% at 1082 declined further as the support pertaining to a mine showdown in New Caledonia, holder of the second-biggest nickel reserves, waned. Nickel production at Vale SA plant is planned to be resumed by June 15 as the firm got government permission. The metal touched a two-year high in May after an acid spill exacerbated supply worries predominating the markets due to Indonesia’s ban on ore exports. Nickel prices had surged more than 50 per cent this year to reach the highest in two years last month, after top ore supplier Indonesia banned exports in January. But as some investors took profits, traders said chart-based sales were triggered pushing prices down.  Vale SA’s New Caledonian Nickel Plant, holder of the second biggest reserves in the world is all set to resume the nickel production within 10 days, followed by a permission granted by the government to restart the plant operations. A Toronto based spokesman, Cory McPhee said that the facility would restart in a step by step manner. On May 30, company said that it had received the permission to restart, According to the U.S. Geological Survey, New Caledonia in the Pacific Ocean have around 16 % of the global reserves, second position goes to Australia. While Negative effects from China's probe into financing fraud at the Port of Qingdao continued to affect copper and nickel prices. Technically market is under fresh selling as market has witnessed gain in open interest by 28.83% to settled at 6685 while prices down -26.6 rupee, now Nickel is getting support at 1071 and below same could see a test of 1060 level, And resistance is now likely to be seen at 1102.6, a move above could see prices testing 1123.2.

Trading Ideas:

Nickel trading range for the day is 1060-1123.2.

Nickel dropped as negative effects from China's probe into financing fraud at the Port of Qingdao continued to affect  prices.

The World Bank’s cut on its outlook for the global economic growth heaped pressure on prices.

UK ILO unemployment rate fell unexpectedly to 6.6% in the three months to April, and the jobless figure for May also decreased by 27,400.