Nickel yesterday settled down -0.21% at 849.10 tracking LME nickel prices which closed at $13,871/mt, down $105/mt despite of major economic news from Europe and the US was positive. Upbeat service PMIs from France, Germany and UK and US ISM manufacturing index boosted base metals prices, but nickel prices only borrowed little support. The US ISM non-manufacturing PMI rose to 56 in July, driven by a significant increase in new orders. Manufacturing PMI released earlier was also positive, offsetting negative effect from disappointing non-farm payrolls. However, Fisher, President of the Federal Reserve Bank of Dallas, said the US Federal Reserve is nearer to winding down QE3 and appealed the Fed to taper off QE3 from this autumn, forcing base metals to give back gains. PMI in the UK, France, Italy and euro zone all capped forecasts. Germany's PMI, though missing expectations, did stay above 50. Upbeat figures suggest Europe will get rid of debt crisis soon. HSBC's China services PMI for July was consistent with forecasts. However, HSBC's July China manufacturing PMI fell, in divergence with China official manufacturing PMI. This turned investor attention to China's foreign trade data due Thursday and industrial value-added in July to be announced Friday. Investors will remain worried over metal demand in China ahead of the release of key economic indicators. The US dollar index trimmed 0.08%, while the euro closed 0.17% higher against the US dollar. Global stock markets and LME base metals prices were mixed. Technically market is under fresh selling as market has witnessed gain in open interest by 6.06% to settled at 6513 while prices down -1.8 rupee, now Nickel is getting support at 844.60 and below same could see a test of 840.20 level, And resistance is now likely to be seen at 854.90, a move above could see prices testing 860.80.
Trading Ideas:
Nickel trading range for the day is 840.2-860.8.
Nickel yesterday settled down tracking LME nickel prices despite of major economic news from Europe and the US was positive.
Manufacturing PMI released was positive, offsetting negative effect from disappointing non-farm payrolls.
Investors will remain worried over metal demand in China ahead of the release of key economic indicators.
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