Nickel yesterday traded with the positive node and settled 0.41% up at 942.8 since the EU meeting did not open, the market remained cautious, keeping transactions remained muted. Since market concerns over Greek exit still existed and the US dollar index continued to rise on risk aversion. EU leaders’ meeting failed to achieve any substantial progress, adding to risk aversion. Thus, global financial markets declined in general, with the Euro fell against the Dollar below 1.2600 to a 22 month low and the US dollar index hitting a high of 82. The European Central Bank was stepping up efforts to prepare for a potential Greek exit. It was expected Greece would finally leave the euro zone due to the disagreement among EU leaders. In this context, the global financial market will tumble and base metals continue the weak trend. Overnight negative news will spread to Thursday's Asian markets, and the euro will fluctuate feebly. China will announce the HSBC manufacturing PMI data Thursday, and markets expect this data to remain below the 50 mark, which will trigger aggressive sell-offs from short investors. In yesterday's trading session nickel has touched the low of 936.3 after opening at 939.1, and finally settled at 942.8. For today's session market is looking to take support at 936.5, a break below could see a test of 930.2 and where as resistance is now likely to be seen at 948.8, a move above could see prices testing 954.8.

Trading Ideas:

Nickel trading range for the day is 930.27-955.

Nickel gained despite LME prices inched down as Spain's and Italy's 10-year government bond yields rose by 4 basis points

The European central bank has formed a work team to prepare for Greece leaving the euro zone.

The non-official meeting between EU leaders did not achieve any result, boosting risk aversion sentiment.