Nickel yesterday traded with the negative node and settled -0.75% down at 946.4 as downbeat PMI from China and the euro zone weighed on market sentiment and dragged down base metal prices. HSBC's preliminary China purchasing managers index (PMI) fell to a four-month low in March, lower than 50 for the fifth consecutive month. The new low of new orders index in four months indicated waning demand both at home and abroad. What is more worrying is that the slowdown in manufacture activities began to affect employment market. Germany and France’s preliminary PMI both fell sharply below 50, and industrial orders also contracted significantly in January in the euro zone. The contraction of manufacture activities in China and the euro zone indicate that economic growth may fall further, which may curb demand for raw materials to great extent. In this context, LME base metal prices largely closed with losses overnight. The weak PMI from China and euro zone stoked market concern over base metal demand perspective. The gap between the Federal Reserve's dovish core and its hawkish wing was on display on Thursday as a top Fed official said the economy is in better shape even as Fed Chairman Ben Bernanke focused on a source of weakness. In yesterday's trading session nickel has touched the low of 940.5 after opening at 951.7, and finally settled at 946.4. For today's session market is looking to take support at 940, a break below could see a test of 933.5 and where as resistance is now likely to be seen at 953.4, a move above could see prices testing 960.3.

Trading Ideas:

Nickel trading range for the day is 933.53-960.

Nickel settled own as downbeat PMI from China and the euro zone weighed on market sentiment

The contraction of manufacture activities in China and the euro zone indicate that economic growth may fall further

The weak PMI from China and euro zone stoked market concern over base metal demand perspective