Nickel yesterday settled down -0.17% at 825.20 tracking LME nickel prices which closed at USD 13,630/mt, down USD 270/mt due to sliding China's stocks leading declines of other base metals. Money shortfalls in China continued to affect the LME nickel market, and US Q1 GDP fell short of expectations, causing speculations that the cut of QE will be contracted, but this failed to boost LME nickel prices. Worries over economic growth and liquidity crunch in China continued to weigh on commodity prices. The downward revision of US 1Q GDP also undermined sentiment in base metal market. On the other hand, remarks from the head of major central banks are providing a source of comfort. President of the Bank of England said investors overreached to Fed Chairman Bernanke's speech. ECB President Mario Draghi said in terms of monetary policy, price stability is assured, and the overall economic outlook still warrants an accommodative stance, the exit from which by the way is still distant since inflation is low and unemployment is high. Worse-than-expected US 1Q GDP makes investors guess as to whether the US Fed will keep QE3 in place, pushing US shares up, with the Dow Jones up over 1%. European stocks closed 1.7% higher. Gold prices, however, trimmed 3.6%. Technically market is under long liquidation as market has witnessed drop in open interest by -4.88% to settled at 8679 while prices down -1.4 rupee, now Nickel is getting support at 818.4 and below same could see a test of 811.6 level, And resistance is now likely to be seen at 831.3, a move above could see prices testing 837.4.

Trading Ideas:

Nickel trading range for the day is 811.6-837.4.

Nickel seen under pressure as money shortfalls in China continued to affect the nickel prices

PBOC said late it had provided cash to some institutions facing temporary shortages and would continue to do so if needed.

Inspired by LME nickel prices, both Jinchuan and Russian nickel prices rose by RMB 600/mt, with nickel prices advancing to RMB 96,500-97,500/mt.