Nickel on MCX settled down -0.69% at 716.50 tracking weakness from LME Nickel which traded steady at around $10,790 down 0.6 percent from the previous session, after closing down 2.7 percent overnight. It rose to its highest since Dec. 19 on Monday, amid a mining crackdown in the Philippines. Yesterday the momentum was due to the US dollar, which ascended on Tuesday. With a lack of new, fundamental developments in the nickel market, the dollar-denominated commodity is largely tracking the greenback’s movements. When the dollar climbs it makes the commodity less appealing for holders of international currencies. Meanwhile the INSG yesterday published supply and demand data on the global nickel market for the full year 2016. Thus, the nickel market again had a supply shortfall (49.7 thousand tonnes) for the first time in five years. According to the INSG 2016, worldwide nickel demand exceeded the mark of 2 million tonnes for the first time. In addition to the supply shortfalls in the Philippines, this had contributed decisively to the supply deficit on the global nickel market. Data from the International Nickel Study Group on Tuesday showed the market moved to a surplus of 9,700 tonnes in December from a deficit of 1,700 in November. For all of 2016, the market was at a deficit of 49,700 tonnes versus a surplus of 91,400 tonnes in 2015. Technically market is under fresh selling as market has witnessed gain in open interest by 2.18% to settled at 13575 while prices down -5 rupees, now Nickel is getting support at 712.7 and below same could see a test of 708.8 level, And resistance is now likely to be seen at 723, a move above could see prices testing 729.4.

Trading Ideas:

# Nickel trading range for the day is 708.8-729.4.

# Nickel dropped carrying its previous losses after prices seen supported amid a mining crackdown in the Philippines.

# INSG showed that global Nickel market moved to a surplus of 9,700 tons in December from November's deficit of 1,700 tons.

# For all of 2016, the market was at a deficit of 49,700 tonnes versus a surplus of 91,400 tonnes in 2015.