I just bought Nikon D60 SLR with VR 18-55mm Lense 1:3.5-5.6G. & Tripod. I cant buy lighting system due to my budget. So I want to use early morning sunlight (Outdoor) for my Jewelry Photography.. Please advise me the camera settings & distance between jewlry & camera for sharp & clear photos.Thanks.

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Use a light tent for lighting, they are very easy to make for less than $10. Look at www.studiolighting.net/homemade-light-box-for-product-photography/ To get an idea of how to do this. You can also build a frame and use white bed sheets and then put the light on the outside of teh box for even lighting. Use a tripod and the highest Aperture (larger number) for good depth of field. The following sight also provides good details for jewelry photography: www.tabletopstudio.com/documents/jewelry_photography.htm

Your main concern is lighting... I've successfully used large tupperware bowls (the milky ones) with the bottoms removed to give a nice even surrounding light to jewelry. That's a budget solution. Your lens doesn't have a macro setting and 18mm is going to throw out the perspective on your jewelry (still, an interesting shot however). If I may suggest, at least get yourself an extension tube (short so you don't loose more than one stop of light). They are not expensive but will give you macro capability. The distance you will want between your camera and jewelry will be determined by the minimum acceptable focal length of your lens combination (with the extension tube, it might be as little as a few inches to as much as a foot (depending on your zoom setting). As for your settings: Depth of field is important for a successful photograph but there is software available to you at a reasonable cost that can provide you with infinite depth of field... it's called Helicon Focus ( http://www.popphoto.com/photosoftware/4580/extreme-depth-of-field-with-helicon-focus.html ) <--- an article that explains the concept. You have a great Camera... enjoy it.