Nickel yesterday settled up 0.9% at 831.30 tracking LME nickel prices which overnight opened at USD 13,750/mt, with the high end of the price range USD 14,048/mt, and finding support at USD 13,700/mt. Finally, LME nickel prices closed at USD 13,980/mt, up USD 243/mt from the previous trading day. Inventories grew by 228 mt, to 187,716 mt. Economic data released by the US and Europe overnight were positive. Improving global manufacturing alleviated worries over demand growth. Manufacturing PMI in China was mixed. Some analysts say worries did ease some as China's manufacturing was not as bad as expected. Manufacturing activity across the euro zone contracted at its slowest pace in 16 months in June. The Institute for Supply Management (ISM) announced the US manufacturing PMI was 50.9 in June, higher than the 50 estimate, strengthening confidence over the US economic recovery. China's official June PMI fell from 50.8, to 50.1, but was still above 50. Besides, China's central bank took measures to eased interbank capital crunch, so the Shanghai Composite Index closed the day with gains at 1,995. The US dollar index closed down at 83.005, supporting base metals prices to rebound. Positive economic data from Europe and US helped ease market concerns over demand. Declines of euro zone manufacturing activities were the slowest in 16 months. US ISM announced US June manufacturing index was 50.9, higher than the expected 50, enhancing market expectations that US economy will continue to recover. Now Nickel is getting support at 822.40 and below same could see a test of 813.50 level, And resistance is now likely to be seen at 836.20, a move above could see prices testing 841.10.

Trading Ideas:

Nickel trading range for the day is 813.6-841.2.

Nickel ended with gains as support seen after data showed euro zone manufacturing activity had stabilised.

Market sentiment was boosted as global manufacturing improved and as liquidity crunch in China is fading.

China's HSBC manufacturing PMI fell to a nine-month low of 48.2 in June, down from a preliminary reading of 48.3