Nickel settled up at 864.60 recovered giving up ground it gained on the back of an ore export ban in Indonesia, that was implemented mid-January and posed a risk to global supply. Yesterday the US ISM non-manufacturing index rose from 53.0 in December to 54.0 in January, slightly ahead of expectations. Atlanta Fed President Lockhart said that he expects tapering to continue in the US at the current pace with asset purchases wound down by the end of 2014. He expects the US jobless rate to fall to 6.5% in the near term, and that it was unlikely the Fed funds rate will rise before 2015. Lockhart expects inflation to remain well anchored although likely to rise toward 2% by year end. Nickel gained for the first time in four days on speculation that demand for the metal used in corrosion resistance in stainless steel will increase. Crude stainless steel production will increase 4.6 percent to a record 39 million tons in 2014, MEPS (International) Ltd., an industry consultant in Sheffield, U. K., said in a report yesterday. Output in China, the world's top user, will climb by 6.8 percent to 19.3 million tons in 2014, representing almost 50 percent of global production, MEPS said. Chinese markets have been closed since last Friday for the Lunar New Year celebrations and are due to reopen on Friday. Technically market is under fresh buying as market has witnessed gain in open interest by 30.55% to settled at 6389 while prices up 0.2 rupee, now Nickel is getting support at 859.4 and below same could see a test of 854.1 level, And resistance is now likely to be seen at 873.4, a move above could see prices testing 882.1.

Trading Ideas:

Nickel trading range for the day is 854.1-882.1.

Nickel settled flat as disappointing U. S. employment reading reanimated worries about demand for the metal.

U. S. economic data provided some support to the market, showing growth picked up in the dominant U. S. service sector in January.

The market has been unusually quiet in recent days, as Chinese metal traders went on vacation to celebrate the Lunar New Year.