Nickel settled up 1.96% at 1146.1 tracking firmness in other base metals counters as support seen after US Q2 GDP rose 4% on the YoY basis. The US GDP growth surged to an annual rate of 4% in the second quarter of this year, well above the expected 3% rise. The marked Q2 growth was largely attributable to rising inventories, exports, as well as private consumption. The private consumption expenditure (PCE) grew at a rate of 2.3% during the April-to-June period, beating the estimated 2% increase and 1.4% rise in Q1. Meanwhile, the US Federal Reserve further scaled back its QE stimulus by USD 10 billion at the July Federal Open Market Committee meeting.

The Fed stated that the likelihood of inflation hovering persistently below 2% fell slightly, with policymakers split on an interest rate hike. In the euro zone, the July consumer confidence index was finalized at -8.4, in line with expectations and June's reading. Germany's preliminary CPI grew by 0.3% MoM in July, level with the reading in June and rose by 0.8% YoY, below the 1% increase a month earlier. A slew of economic reports, including the euro zone's inflation, US initial jobless claims, Challenger's Job-Cut reports, as well as Chicago's manufacturing PMI, all are expected to come in positive on Thursday.

Technically market is under short covering as market has witnessed drop in open interest by -24.55% to settled at 3169 while prices up 22 rupee, now Nickel is getting support at 1123.9 and below same could see a test of 1101.6 level, And resistance is now likely to be seen at 1157.9, a move above could see prices testing 1169.6.

Trading Ideas:

Nickel trading range for the day is 1101.6-1169.6.

Nickel gained tracking firmness in other base metals counters as support seen after US Q2 GDP rose 4% on the YoY basis

In the euro zone, the July consumer confidence index was finalized at -8.4, in line with expectations and June's reading.

US non-farm employment data scheduled for release will be the focus of markets, and positive US GDP will continue to affect the market.