Nickel yesterday traded with the positive node and settled 0.23% up at 993.20 but market can see pressure building on higher side as due to political factor in Italy, the euro suffers the risk of falling. Spain's opposition Socialist Party called for the resignation of Spanish Prime Minister Mariano Rajoy over a corruption scandal, and the approval rating of the ruling People's Party dropped to a record low. At the same time, the latest Italian poll revealed that the approval rating of Prime Minister Silvio Berlusconi is increasing, adding uncertainty in the country's election. Political uncertainty in these two countries heightened market worries over the euro zone's economic growth and stability and also pushed Italian and Spanish borrowing cost higher. European stock markets closed 1.5% down and saw the largest intraday decline since earlier 2013. The euro fell appreciably as caution returned to markets, but the US dollar index rebounded by 0.5%, weighing on commodity markets. The US Commerce Department announced in the evening that factory orders increased by 1.8% MoM in December, softer than the expected 2.4%. In response, US equity markets closed down by 1% and surrendered almost all the gains registered last Friday. In yesterday's trading session nickel has touched the low of 987.9 after opening at 989.8, and finally settled at 993.2. For today's session market is looking to take support at 988.2, a break below could see a test of 983.33 and where as resistance is now likely to be seen at 997.7, a move above could see prices testing 1002.3.

Trading Ideas:

Nickel trading range for the day is 983.33-1002.

Nickel ended with gains but upside was limited due to the political crisis overnight in the euro zone

US Commerce Department announced US finished product orders in December rose by 1.8%, to USD 484.76/mt billion

Political uncertainty in Spain and Italy heightened market worries over the euro zone's economic growth and stability