Nickel settled 1.5% up at 957.90 as support seen from the LME nickel price which ended high at USD 17,510/mt, up USD 175/mt. There was limited news in Asian market, and Asian stocks markets were mixed, without any directions for metals market. Meanwhile US December retail sales were up 0.5% MoM, better than the forecast, and reflecting strong consumer spending at the end of 2012. The growth of seasonally adjusted commercial inventories in November was 0.3%, with USD 1.62 trillion, and in line with expectations. US December PPI was down 0.2% MoM, larger than the forecast of 0.1%, showing low inflationary pressure and the US Federal Reserve still has room to push additional easing policies. Besides, January manufacturing index of New York Federal Reserve was -7.78, much lower than the expected 0.00. The manufacturing has been contracting for a sixth straight month due to the sharp slide of new orders and shipping index. The World Bank lowered expectation for global economic growth in 2013 to 2.4%, compared to the previous 3%. The famous rating agency Fitch said ratings of US, UK, France and Spain will likely be downgraded. If the medium-term plan for spending cuts in the US lacks reliability, its rating will be lowered. In yesterday's trading session nickel has touched the low of 937.7 after opening at 942, and finally settled at 957.9. For today's session market is looking to take support at 943.8, a break below could see a test of 929.7 and where as resistance is now likely to be seen at 965.8, a move above could see prices testing 973.7.

Trading Ideas:

Nickel trading range for the day is 929.77-974.

Nickel settled 1.5% up at 957.90 as support seen from the LME nickel price which ended high at USD 17,510/mt

The German economy contracted by a larger-than-expected 0.5 percent in the final quarter of 2012.

Base metals seen under pressure with comments on the US debt ceiling by US Treasury Secretary and Barack Obama weighing on sentiment