Nickel settled down -3.45% at 1122 as inventories tracked by the London Metal Exchange rose to a record. Stockpiles have climbed 19 percent this year to 311,088 metric tons. Prices have jumped 34 percent this year, partly because Indonesia barred shipments of unprocessed ores, spurring concerns that supplies will trail demand. The LME stock rise reflects the reality that the global market remained in surplus during the first half of the year. Traders were downbeat about the metal's prospects given rising stocks and a 38 percent gain already this year.

Also a drag on nickel, an Indonesian mining official said the country had resumed exports of metal ore concentrates, ending a six-month stoppage. Prior to the stoppage, Indonesia was the world's top exporter of nickel ore. The focus next week will be on a flash reading of China's manufacturing health, as well as U. S. inflation, new home sales and durable goods orders. The focus next week will be on a flash reading of China's manufacturing health, as well as U. S. inflation, new home sales and durable goods orders.

In the United States, consumer sentiment dipped in early July while an index of consumer expectations weakened for a third straight month. The Thomson Reuters/University of Michigan preliminary consumer sentiment index fell to a four-month low of 81.3 in July from 82.5 in June, confounding expectations for rise to 83.0. Technically market is under fresh selling as market has witnessed gain in open interest by 8.28% to settled at 5882 while prices down -40.1 rupee, now Nickel is getting support at 1105.3 and below same could see a test of 1088.7 level, And resistance is now likely to be seen at 1149, a move above could see prices testing 1176.1.

Trading Ideas:

Nickel trading range for the day is 1088.7-1176.1.

Nickel settled down -3.45% as inventories tracked by the London Metal Exchange rose to a record.

Stockpiles have climbed 19 percent this year to 311,088 metric tons.

Also a drag on nickel, an Indonesian mining official said the country had resumed exports of metal ore concentrates, ending a six-month stoppage.