Nickel
Nickel headed for its first weekly gain in six in London as power disruptions in Western Australia and declining stockpiles increased concern about adequate supply.

Nickel stockpiles tracked by the London Metal Exchange have fallen 7.7 percent since the end of April. Apache Corp., operator of an Australian natural-gas plant, said it may take two months to partially restore production after a June 3 explosion at a pipeline. Nickel producer Minara Resources Ltd. has operated at reduced capacity since then.

Higher nickel prices will bolster earnings for companies including OAO GMK Norilsk Nickel, the biggest producer of the metal used in stainless steel.

Nickel slumped 21 percent last year as inventories monitored by the LME expanded sixfold. Inventory fell 0.2 percent to 47,490 tons, at LME .

Apache stopped supplying gas from Varanus Island off Australia's northwest coast after a rupture in a pipeline triggered a fire, shutting off about a third of the state's supplies.

Minara, Australia's second-largest nickel producer, secured alternative supplies for its Murrin Murrin mine from Woodside Petroleum Ltd., a company spokesman said. Last month, the company forecast production of 34,000 tons to 38,000 tons this year.

Oxiana resumed full production at its Golden Grove zinc mine in Western Australia after sourcing alternative power, the Melbourne-based company said today. It had been using standby diesel power since June 3.

MCX Nickel June - Technical Outlook:
The daily stochastics have crossed over up which is a bullish indication. The prices closed above short term and medium term EMA, which supports bears. MACD is heading upwards in positive region, showing increase in bullish momentum.

Technical have turned neutral to bullish and market is expected to remain positive above 998 levels. If sustain above this level can see a rally towards 1037 and 1067, If market sustains below 967 can see a further fall towards 928 and 898.

Recommendations: MCX Nickel June: Buy at 955 Target 969 and 978 SL 948