Technically Nickel market is getting support at 717.8 and below same could see a test of 704.6 levels and resistance is now likely to be seen at 750.6, a move above could see prices testing 770.2.
Nickel on MCX settled down -3.93% at 730.90 amid of speculation that prices may see further downside as pressure from concerns excess that supplies are mounting seen.
Hefty supply of metals was outweighing expectations that a flurry of data over the next few weeks will underscore a strong second-half economic outlook for China.
Meanwhile yesterday ShFE nickel lost 2 percent and LME nickel was up nearly 1 percent to $11,440 a tonne after dropping 5.2 percent overnight on talk of higher supplies from Indonesia, a top exporter to China.
After surprising pretty much everyone with solid growth in the first half, China's economy has continued to motor along nicely with a flurry of data for August expected to show momentum will largely hold up through to the end of the year despite tighter policy.
Lastweek nickel hit its highest in more than two years, boosted by Philippines President Rodrigo Duterte's anti-mining stance that was raising concerns over supply, and new demand for the metal to make electric vehicle batteries.
Now Investors awaited US consumer inflation data due on Thursday, which should give further clues about the pace of US interest rate increases. A run of weak inflation readings has lowered expectations the Federal Reserve will raise rates in December.
--Nickel trading range for the day is 704.6-770.2.
--Nickel dropped tracking LME prices ended down 5.2 percent to $11,360 on talk of higher supplies from Indonesia.
--The discount for cash nickel over the three-month at a 3-year high near $90 a tonne also suggests large deliveries to LME warehouses.
--Canada's Sherritt eyes nickel products for booming battery market.
Courtesy: Kedia Commodities