Nickel yesterday settled at 823.90 tracking LME nickel prices which overnight opened at USD 13,810/mt, with the high end of the price range USD 13,930/mt, and finding support at USD 13,709/mt. Finally, LME nickel prices closed at USD 13,737/mt, down USD 90/mt from the previous trading day. The market overnight lacked macroeconomic news, with investors focusing their attention on economic data and US Federal Reserve official statement regarding stimulus policies. Concerns over China's money shortages eased last Friday, and US economic data was mixed. Chicago June PMI fell to 51.6, its largest monthly decline over the past four years, but University of Michigan's final June PMI was revised upward to 84.1, down slightly from a 6-year high. The US dollar index stood firm at 83, refraining most commodity prices to rise slightly. LME base metals prices closed with gains last Friday, but LME nickel prices closed the day down USD 90/mt. Meanwhile China Banking Regulatory Commission President Shang Fulin said at the Lujiazui Forum that the banking sector has been subject to liquidity tightness recently, but the sector actually did not fall short of liquidity. Since liquidity tightness has eased, domestic banking sector will continue to move steadily. But the industry should enhance risk management, structure adjustment and business transformation. Technically market is under fresh buying as market has witnessed gain in open interest by 0.03% to settled at 13950 while prices up 0.6 rupee, now Nickel is getting support at 822.3 and below same could see a test of 820.7 level, And resistance is now likely to be seen at 825.4, a move above could see prices testing 826.9.

Trading Ideas:

Nickel trading range for the day is 820.7-826.9.

Nickel settled flat as market lacked macroeconomic news, with investors focusing their attention on economic data and US Fed official statement.

Concerns over China's money shortages eased last Friday, and US economic data was mixed.

Fed will begin to take action in September at earliest if US economy maintains mild recovery, causing expectations over QE end to grow.