Nickel yesterday settled flat at 837.90 giving up its gains as Portugual's Foreign Affairs Minister resigned yesterday, triggering concerns that European debt crisis re-erupted. Meanwhile the U. S. was to release the ADP report on nonfarm payrolls later Wednesday, as well as the weekly government report on initial jobless claims, which comes out a day earlier than usual due to Thursday's Fourth of July holiday. The country was also slated to produce data on the trade balance, while the ISM was to produce a report on U. S. service sector activity. Market players also looked ahead to Friday's highly-anticipated U. S. nonfarm payrolls data for indications of how the recovery in the U. S. labor market is progressing. Any improvement in the U. S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months. Market players shrugged off weaker-than-expected services sector data out of China. A government report released earlier in the day showed that China's non-manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May. Also Chinese Premier Li Keqiang held a State Council executive meeting July 3 concerning rectification and reform work and to activate reserve capital. The China (Shanghai) Free Trade Pilot Zone Plan and the Regulations of Foreigners Entry and Exit China were passed at the meeting. Technically market is under fresh buying as market has witnessed gain in open interest by 8.37% to settled at 14776 while prices up 0.9 rupee, now Nickel is getting support at 834.4033 and below same could see a test of 830.960 level, And resistance is now likely to be seen at 844.03, a move above could see prices testing 850.360.

Trading Ideas:

Nickel trading range for the day is 831-850.4.

Nickel settled flat as signals on a Portugal crisis dampened market sentiment, weighing on prices.

The US foreign trade data missed forecasts, and ISM non-manufacturing index was also worse than the 54 expected.

As investors' opinions on market outlook were divided, the falling US dollar failed to give a boost to prices