Nickel settled up 1.27% at 893.2 rose to a 10-week high on concern that supplies will tighten as Indonesian bans ore exports. Also the Federal Statistical Office reported the German economy grew 0.4% YoY in 2013, below forecasts and the smallest growth since 2010. The Office believed the country suffered from the continuing recession in some European countries and from restrained growth of the global economy. The World Bank raised forecast of global economic growth for 2014 from 3.2% to 3.4% on Wednesday, indicating that the global economy growth will accelerate with developed economies emerging from recession. New York Fed's manufacturing index in January recorded 12.51, much better than the 2.22 in December 2013. US PPI also increased, showing US manufacturing demand is on the mend. Positive consumption and improving manufacturing were also reflected in the Beige Book, causing optimism toward US economic development and pushing up the US dollar index. But improving demand in the manufacturing pushed up prices. LME nickel prices opened at USD 14,334/mt on Thursday, with the high end of the price range USD 14,622/mt, and finding support at USD 14,225/mt. Finally, LME nickel prices closed at USD 14,519/mt, up USD 135/mt from the previous trading day. Technically market is under short covering as market has witnessed drop in open interest by -12.25% to settled at 6445 while prices up 11.2 rupee, now Nickel is getting support at 878.4 and below same could see a test of 863.5 level, And resistance is now likely to be seen at 903.1, a move above could see prices testing 912.9.

Trading Ideas:

Nickel trading range for the day is 863.5-912.9.

Nickel ended with gains as improving demand in the manufacturing pushed up the base metals prices

New York Fed's manufacturing index in January recorded 12.51, much better than the 2.22 in December 2013.

Positive consumption and improving manufacturing were also reflected in the Beige Book, causing optimism toward US economic development