Nickel yesterday traded with the negative node and settled -1.3% down at 890.30 but overall base metals prices overnight fluctuated narrowly. The market expects China's economic growth during April through June will likely slide to a record low last seen in 1Q 2009. Metals should be weigh down if China's GDP continues to weaken significantly. Moody's announced it will downgrade Italy's rating from A3, to Baa2, and maintain the outlook negative. Moody's said Italy's rating was downgraded owning to Spanish and Greek crisis. LME nickel prices overnight opened at $16,120/mt, with the high end $16,179/mt, finding support at $15,770/mt. Finally, LME nickel prices closed at $15,890/mt, down $275/mt. Meanwhile, traders were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing. A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone. In yesterday's trading session nickel has touched the low of 887.5 after opening at 903.8, and finally settled at 890.3. For today's session market is looking to take support at 883.2, a break below could see a test of 876.1 and where as resistance is now likely to be seen at 901.6, a move above could see prices testing 912.9.

Trading Ideas:

Nickel trading range for the day is 876.17-913.

Nickel dropped tracking weakness in LME prices despite data showed number of US jobless claims hit a 4-year low

Moody's said Italy's rating was downgraded owning to Spanish and Greek crisis.

Mainstream prices of Jinchuan nickel slid to RMB 119,700-119,800/mt but demand for Jinchuan nickel was still sluggish