Nickel yesterday traded with the positive node and settled 1.1% up at 980.2 tracking LME nickel which opened at USD 19,879/mt and closed at USD 19,990/mt overnight, up by USD 410/mt from a day earlier, with the highest price at USD 20,500mt and the lowest price at USD 19,525/mt. The US financial market was closed overnight, and the second round of Greek bailout fund still faced many uncertainties. Although the eurozone financial ministers meeting still has not come up with final decision, market expectation over the bailout was optimistic. In this context, LME nickel prices rallied to certain extent at the tail of the trading. In the eurozone, players closely watched latest development of the Greek debt issue which was discussed at overnight European financial ministers meeting, and widely expected that agreement can be reached at the meeting. Amid optimism, related markets in the euro zone were boosted. Coupled with China central bank’s cut in bank requirement reserve ratio, LME base metal prices largely closed with gains overnight. The Greek bailout was stranded again overnight, which may weigh on LME nickel prices on Tuesday.For today's session market is looking to take support at 968, a break below could see a test of 955 and where as resistance is now likely to be seen at 987.5, a move above could see prices testing 994.9.

Trading Ideas:

Nickel trading range for the day is 955.93-995.

Nickel jumped over 1% as RRR reduction is seen in the Q2, but unless China loosens its grip on its property market.

Support seen by hopes Greece will soon clinch a second bailout deal although gains looked tentative amid slow demand.

Nickel markets in deficit during Jan-Dec 2011 - WBMS