Nickel settled down -0.75% at 1132.30 the third time in four sessions amid concern that demand will ebb as signs of deepening economic malaise in Europe dim global growth prospects. German consumer confidence will fall more than economists forecast in September, while French factory confidence dropped in August to the lowest in 13 months, according to reports released. Also European Central Bank Chief Mario Draghi stated last Friday in Jackson Hole that the ECB is set to unveil more economic stimulus measures, raising expectations for quantitative easing (QE) in the euro zone. Meanwhile, the ECB hired BlackRock, the world’s biggest money manager, to advise on developing a program to buy asset-backed securities, which should help increase liquidity in financial markets. Meanwhile No written agreement was reached on Wednesday at the meeting between Russian President Vladimir Putin and his Ukrainian counterpart Petro Poroshenko. Ukrainian military spokesman claimed on Wednesday that more Russian soldiers had crossed into Ukraine to launch an attack on government forces with pro-Russian separatists. The intensifying geopolitical strains in Ukraine left investors even more cautious. The People’s Bank of China (PBOC) reported that it recently granted a RMB 20 billion re-lending quota to some regional bank branches to support agriculture. The PBOC also emphasized that it will lower interest rates for qualified rural financial institutions by one percentage points from favorable rates. This is expected to give a boost to China’s stock markets and base metals prices. Technically market is under fresh selling as market has witnessed gain in open interest by 1.28% to settled at 3239 while prices down -8.6 rupee, now Nickel is getting support at 1123.4 and below same could see a test of 1114.5 level, And resistance is now likely to be seen at 1141.1, a move above could see prices testing 1149.9.

Trading Ideas:

Nickel trading range for the day is 1114.5-1149.9.

Nickel prices ended with losses after data showed that Germany's GFK CCI fell short of market expectations.

Data yesterday showed French factory confidence fell to a 13-month low and a measure of German consumer sentiment slid more than predicted

Profit growth at industrial companies in China slowed to 13.5 percent in July from 17.9 percent in June, the fastest rate in seven months.