Nickel yesterday traded with the negative node and settled -1.29% down at 964.90 slipped wiping out part of the more than 1 percent gain in the prior session, as concerns over the euro zone debt crisis hampering demand for industrial metals returned following anti-austerity protests in Spain. Meanwhile Global miner Xstrata said it is suspending operations at its Cosmos nickel mine in Western Australia due to prolonged weak prices for the metal and a strong Australian dollar, cutting around 150 jobs. Cosmos, which has produced around 4,200 tonnes of nickel in concentrate so far this year, has been hit by persistent strength in the Aussie dollar and nickel prices almost 40 percent lower than their early-2011 peak above $29,000 per tonne. Xstrata, which is also cutting back coal production in Australia due to weak prices and high costs, said its nearby Sinclair Nickel Operation was unaffected and is expected to produce about 7,000 tonnes of nickel in concentrate this year. From the europe ECB President Mario Draghi offered a vigorous defence of the bank's bond-buying plans to a sceptical German audience on Tuesday and said it was now up to governments to follow with decisive policy steps of their own. For today's session market is looking to take support at 958.0, a break below could see a test of 951.1 and where as resistance is now likely to be seen at 976.0, a move above could see prices testing 987.1.

Trading Ideas:

Nickel trading range for the day is 951.17-987.

Nickel dropped due to growing concerns over Spain and Greece, and as US home presale volume fell in August

Spain has not yet asked for financial aids, fueling risk aversion sentiment.

Nickel output of Brazil rises by 6.4% year-on-year to 44,134 million metric tons in the first eight months of this year