Nickel yesterday traded with the positive node and settled 1.19% up at 1036 tracking LME nickel which opened at $22,775/mt and closed at $23,100/mt, up by $347/mt from a day earlier, with the highest price at $23,175/mt and the lowest price at $22,540/mt.
LME base metal prices largely ended with gains on Thursday, boosted by rally in the US equity market from better-than-expected export data and also from hint that the Ecb will hike interest rate. Data indicate that, the US trade deficit in April narrowed unexpectedly to intra year low, as April's export hit a fresh high and since imports of crude oil were down drastically amid high international oil price.
The Ecb decided to keep benchmark interest rate unchanged at 1.25, which was in line with market expectation.Meanwhile, the Ecb president stressed it was necessary to keep alert on inflationary pressure, which was interpreted by market as a hint for possible interest rate in July.
For today's session market is looking to take support at 1020.8, a break below could see a test of 1005.5 and where as resistance is now likely to be seen at 1045, a move above could see prices testing 1053.9.
