The nickel market is likely to have a supply deficit of 73,000 tons this year, moving to a “balanced” situation for 2011. The nickel market is expected to return to a “small supply surplus in 2011 as one-off production issues are resolved and key projects come on line. Nickel has touched a low of Rs 975.1 a kg after opening at Rs.996.5, and last traded at Rs 979.For today market is looking for the support at 966.2, a break below could see a test of 953.5 and where as resistance is now likely to be seen at 1000.6, a move above could see prices testing 1022.3.

Trading Ideas:

Nickel trading range is 953.5-1022.3.

The nickel market is likely to have a supply deficit of 73,000 tons this year

Nickel is having resistance at 990.80 and support at 966.20 level.

Spread between nickel NOV & DEC contracts yesterday traded in the range of 10.50 - 12.5.