Nickel yesterday traded with the negative node and settled -0.71% down at 990.3 tracking LME nickel prices opened at USD 18,800/mt and closed at USD 18,600/mt overnight, down USD 175/mt from a day earlier, with the highest price at USD 18,800/mt and the lowest price at USD 18,450/mt. LME nickel prices fluctuated narrowly after slight decline during the Asian trading hours. However, LME nickel prices were weighed down to close at USD 18,600/mt, down USD 175/mt due to significant decline of subscription rate of French government bond. Financial market swung widely on Thursday night. LME base metal prices slumped along with non-US dollar currencies due to ongoing concern over the European debt crisis. However, better than expected initial jobless claim from the US suggested improvement in the US employment market. The improvement in the US employment data eased market concern over the European debt crisis, resulting in rebound in US equity market, which boosted LME base metal prices to certain. However, most LME base metal prices still closed with slight losses overnight. It is expected that transactions will be cautious before the announcement of US non-farm employment data scheduled , and Shanghai base metal prices will slip slightly on Friday. For today's session market is looking to take support at 981.9, a break below could see a test of 973.4 and where as resistance is now likely to be seen at 998, a move above could see prices testing 1005.6.

Trading Ideas:

Nickel trading range is 973.4-1005.6.

Nickel steadied as upbeat US data brought a pause in selling pressure, although the respite was temporary.

Better than expected initial jobless claim from the US suggested improvement in the US employment market

Base metal prices slumped along with non-US dollar currencies due to ongoing concern over the European debt crisis