Nickel settled up 0.31% at 936 as falling US Consumer Confidence Index and worse-than-expected housing starts sent the US dollar index down at one point, helping commodity prices rebound. Mild economic growth and accelerated economic recovery in the US as well as the fact that Europe has got rid of recession turned investors bullish over demand for industrial metal. Also US housing starts and building permits in July missed forecasts, indicating rising mortgage rates may be hampering US housing market recovery. The University of Michigan Consumer Sentiment in August fell from a 6-year high hit in July. 10-year yields of US government bonds hit a new 2-year high due to renewed selloff. The Dow Jones Index fell by 0.2% on the day and 2.23% on the week, the largest weekly decline in 14 months. Trader 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. An exit from the stimulus would deal a heavy blow to metals, which has thrived on demand from investors who buy metal to hedge against the inflationary risks of loose monetary policies. In the week ahead, investors will be looking ahead to Wednesday's minutes of the Federal Reserve's most recent meeting, while U. S. data on initial jobless claims and the housing sector will also be closely watched. Technically market is getting support at 929 and below same could see a test of 922.1 level, And resistance is now likely to be seen at 940.8, a move above could see prices testing 945.7.

Trading Ideas:

Nickel trading range for the day is 922.1-945.7.

Nickel rose on signs of resilience in China's economy, an exit from recession for Europe and a U. S. recovery slowly gaining steam.

Falling US Consumer Confidence Index and worse-than-expected housing starts sent the US dollar index down helping prices

Mild economic growth and accelerated economic recovery in US as well as that Europe has got rid of recession turned investors bullish over demand.