Nickel yesterday settled up 0.82% at 901.40 highest level amid hopes policy makers in Beijing will introduce fresh stimulus measures to boost growth in the world's second largest economy. Official data showed that Chinese industrial output rose significantly more-than-forecast in July, while consumer price inflation remained unchanged. Market sentiment received a further boost after Hong Kong daily newspaper South China Morning Post reported earlier that Beijing was "quietly offering financial stimulus" to key cities and provinces to support economic growth. Traders were looking ahead to Tuesday's U. S. retail sales report, as well as speeches by senior Federal Reserve officials later in the week, amid ongoing speculation over how soon the Fed may start to pull back its asset purchase program. Investors have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the U. S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Technically market is under short covering as market has witnessed drop in open interest by -21.64% to settled at 6752 while prices up 7.3 rupee, now Nickel is getting support at 889.70 and below same could see a test of 878.10 level, And resistance is now likely to be seen at 911.90, a move above could see prices testing 922.50.

Trading Ideas:

Nickel trading range for the day is 878.1-922.5.

Nickel gained as positive effect from strong Chinese economic data supported prices

Bundesbank anticipated European governments will reach an agreement on a new bailout plan for Greece in early 2014 at the latest

The market overnight lacked macroeconomic news, with long momentum remaining in the market.