Nickel settled flat as regulators stepping in to curb speculation with position limits, higher margins and transaction costs. Weighing on metals was the potential for a cash crunch in China as yuan borrowing costs in Shanghai surged to a two-month high. U. S. private employers stepped up hiring in November and consumer spending increased last month, the latest signs of economic strength that could further cement the case for an interest rate hike from the Federal Reserve next month. Euro zone inflation hit a 31-month high in November, data showed, providing modest relief for the European Central Bank ahead of an interest rate decision next week as price growth finally ticks up after years of flirting with deflation. According to recent statistics released by the International Nickel Study Group (INSG), the global nickel market has reported production deficit of 52,600 tonnes during the initial three quarters of the current year. This is in comparison with a surplus of 74,800 tonnes during the corresponding nine-month period in 2015. Also, INSG forecasts a deficit of nearly 66,000 tonnes for the whole year 2016. It foresees the nickel market to continue to remain in deficit in 2017 as well. The drastic change in market's supply fundamentals on account of ban on nickel mine production by the Philippines administration led to sharp rally in Nickel prices during recent months. The rally in prices was further aided by improved demand from China. The recovery in Nickel prices has resulted in resurgent stainless steel scrap prices. Technically market is under fresh selling as market has witnessed gain in open interest by 46.3% to settled at 7896, now Nickel is getting support at 754.6 and below same could see a test of 741.3 level, And resistance is now likely to be seen at 776.9, a move above could see prices testing 785.9.

Trading Ideas:

Nickel trading range for the day is 741.3-785.9.

Nickel settled flat as regulators stepping in to curb speculation with position limits, higher margins and transaction costs.

According to recent statistics released by INSG, the global nickel market has reported production deficit of 52,600 tonnes during the initial three quarters of the current year.

The drastic change in market's supply fundamentals on account of ban on nickel mine production by the Philippines administration led to sharp rally in Nickel prices.