Nickel yesterday traded with the negative node and settled -0.72% down at 920.40 overall all base metal prices fluctuated at high levels overnight. German constitutional court announced it rejected the temporary injunction to the ESM and declined the appeal to the debt purchasing by European central bank. German constitutional court approved the ESM with conditions, paving a way for European central bank’s debt purchasing plan and helping ease concerns over European debt crisis. In this context, the US dollar index weakened, pushing up metals prices. But since the market expected US Federal Reserve will push QE3 this week, transactions were muted. German constitutional court judged the ESM legal, boosting risk appetite and LME nickel prices to $17,013/mt. but due to a lack of positive news during US trading hours, some investors closed positions with profit-taking, causing LME nickel prices to slide. Finally, LME nickel prices closed at $16,650/mt, down $133/mt. In yesterday's trading session nickel has touched the low of 912.5 after opening at 925, and finally settled at 920.4. For today's session market is looking to take support at 909.1, a break below could see a test of 897.9 and where as resistance is now likely to be seen at 934.9, a move above could see prices testing 949.5.

Trading Ideas:

Nickel trading range for the day is 897.93-950.

Nickel settled down on profit booking but downside was limited as German constitutional court approved the ESM

FOMC will release the latest interest rate decision and issue monetary policy statement as well

Germany's Constitutional Court gave a green light to ratify the euro zone's new bailout Fund