Nickel yesterday traded with the negative node and settled -0.77% down at 986 tracking LME nickel prices which opened at USD 19,475/mt and closed at USD 19,560/mt overnight, up USD 85/mt from a day earlier, with the highest price at USD 19,630/mt and the lowest price at USD 19,255/mt. LME nickel prices fell to certain extent on decline in China’s stock market, but advanced to close at $19,560/mt from positive result of Portugal’s government bond auction. Yields of Portugal’s government bond rose to record high of 14.54%. In addition, the Fitch may cut Italy’s sovereign credit rating by two notches and Germany also cut economic growth expectation for 2012, weighing on market sentiment. News from the US reported that the negotiation between Greece and its private debtors may reach an agreement before this week, and the Greek officials later expressed that agreement may be reached before this week, boosting optimism towards Greek debt negotiation. In response, the euro advanced and LME base metal prices largely closed with gains, which boosted Shanghai base metal prices as well. Market is focusing the Greek debt negotiation. Otherwise, Greek will face debt default risk. In China’s spot nickel market, trading sentiment will be extremely quiet as most traders and downstream consumers are closed for holiday. For today's session market is looking to take support at 979.7, a break below could see a test of 973.3 and where as resistance is now likely to be seen at 994.3, a move above could see prices testing 1002.5.

Trading Ideas:

Nickel trading range is 973.3-1002.5.

Nickel traded flat but could get support as IMF was seeking to raise funds to tackle the euro zone debt crisis tempered worries.

China economy grew at the slowest pace in more than two years and expanded less than 9% for the first time since mid-2009.

Nickel prices will remain fluctuation trend before result of Greek debt negotiation trading sentiment will be extremely quiet.