Nickel yesterday traded with the negative sentiments and settled -2.3% down at 833.60 as pressure mounted after the news that the global nickel market was in surplus by 21,500 tonnes in the first two months of the year, the latest monthly bulletin from the International Nickel Study Group showed. Prices plunged to their lowest level in 22 months Wednesday as a stronger dollar, steep losses in gold and concerns about industrial demand for the metal pushed prices closer to a bear market. A sell off in bullion and crude oil futures, which posted a record two-day slide earlier this week, has percolated into the base metals market. Metal traders have been increasingly worried that weaker economic growth in China and Europe, the world's two largest consumers of the metal, would further weigh on prices. New car registrations in the European Union fell for the 18th straight month in March, notching a 10.2% drop from a year earlier. Also pressure seen after the IMF trimmed projections for global economic growth to take into account sharp U.S. government spending cuts and the latest struggles of recession-stricken Europe. And data showing lower-than-expected economic growth in China in the first quarter had already led to a sharp drop in copper on Monday. Also Moody's Investors Service on Tuesday cut to stable from positive its outlook for China, the second pessimistic revision by a foreign ratings agency this month. In yesterday's trading session nickel has touched the low of 829.5 after opening at 850, and finally settled at 833.6. For today's session market is looking to take support at 825.4, a break below could see a test of 817.2 and where as resistance is now likely to be seen at 845.9, a move above could see prices testing 858.2.

Trading Ideas:

Nickel trading range for the day is 817.2-858.

Nickel ended with losses as pressure seen after IMF lowered its forecast for global and Chinese economic growth.

The global nickel market was in surplus by 21,500 tonnes in the first two months of the year - INSG

Data showing lower-than-expected economic growth in China in the first quarter also weighed on prices.