Nickel settled flat at 898.20 as economic data from the US and Europe released last Friday turned out mixed. The US housing starts dropped by 9.8% MoM in December, the biggest decline since April 2013. Building permits totaled 986,000 in December, below the 1.01 million expected. The University of Michigan Consumer Confidence Index for January was only 80.4, trailing the 83.5 forecast, and presenting the biggest gap between actual reading and expectation in eight months. These data, however, did not result in a weaker US dollar, with the currency still gaining 0.42%. In the US stock markets, the Dow maintained an upward trend. In the UK, the retail sales for December posted a 5.3% YoY rise, well above the 2.5% estimate, and core retail sales increased by 6.1% YoY, compared with the 3.2% expected. Nevertheless, increase in the GBP was limited. In China, the People's Bank of China (PBOC) decided at a conference held January 17 that it will focus on creating a stable financial circumstance for China's economic reforms this year. Besides, improvements in financing and lending system are also among the major tasks for 2014, so that the financial market will benefit growth in real economy. The US and European stocks were mixed last Friday. Technically market is under fresh buying as market has witnessed gain in open interest by 2.85% to settled at 6487 while prices up 0.9 rupee, now Nickel is getting support at 889.6 and below same could see a test of 881.1 level, And resistance is now likely to be seen at 906.7, a move above could see prices testing 915.3.

Trading Ideas:

Nickel trading range for the day is 881.1-915.3.

Nickel settled flat as gains were limited amid large inventories in China and muted activity ahead of Chinese New Year

Indonesia's ban on nickel ore exports may lead to a fall in Chinese stocks of the material later this year.

Indonesia's nickel production will decline by 84 percent from last year to 9 million tonnes this year, the chief economic minister said.