Nickel on MCX settled up 1.73% at 648.1 on short covering tracking LME prices gained by 2.3 percent after prices dropped amid receding worries about supply shortages. The Philippines said it would allow miners who had been ordered shut on environmental concerns to export stockpiled material. The permission is aimed at limiting the potential build up of silt in nearby waters, an official with knowledge of the order said, rather than the government toning down its campaign, according to the report. The volume of nickel ore stocks from the mines may well exceed 1 million tonnes, or about a month's worth of consumption by top buyer China, said the official, who declined to be named because he is not authorized to discuss the matter publicly. The total would likely be less than 5 million tonnes, he added. More than half of all mines in the Philippines have been ordered to permanently shut to protect watersheds in an eight-month campaign led by Environment and Natural Resources Secretary Regina Lopez. In other news, nickel ore inventories at seven major Chinese ports stayed on the downward track last week. Nickel ore inventories at seven major Chinese ports were down 180,000 tonnes last week, according to data. Despite additional closures last month and the potential for more, nickel prices fell this month. It could be that traders doubt that Duterte will enforce such strict regulations, but it also has to do with fears that the resumption of exports from Indonesia will compensate for any supply shortfall in the Philippines. Technically now Nickel is getting support at 636.8 and below same could see a test of 625.5 level, And resistance is now likely to be seen at 654.1, a move above could see prices testing 660.1.

Trading Ideas:

# Nickel trading range for the day is 625.5-660.1.

# Nickel gained on short covering tracking LME prices gained by 2.3 percent after prices dropped amid receding worries about supply shortages.

# Cash LME nickel fell to a $67 discount, the steepest discount since Jan 2015, reflecting a market in ample supply.

# U.S. consumer confidence surged to a more than 16-year high in March amid growing labor market optimism.