Nickel settled up 0.81% at 887.90 on rumours that Indonesia, the world biggest exporter of nickel ore, will be persistent in implementation of the export ban that came in force in mid-January. The metal also continued to draw strength from forecasts of solid demand in China. MEPS Ltd. and Macquarie predict China’s stainless steel production, which requires nickel, to rise to 19.3 million tonnes. On Monday, a senior government official said Indonesia did not expect to approve any export permits for mineral concentrates until next month at the earliest. Rules regarding concentrate exports will have the biggest impact on copper, but the news highlighted the difficult environment for all mineral shipments from Indonesia this year. Healthy stock levels of nickel mean that the ban is not likely to drive up prices in a sustained way until the second half of the year, Berry said. Data released over the weekend showed that Chinese aggregate financing, the broadest measure of credit, rose to a record-high of CNY2.58 trillion in January. The report also showed that bank lending rose to a four-year high of CNY1.32 trillion last month, easing concerns over tightening liquidity levels. Technically market is under short covering as market has witnessed drop in open interest by -20.23% to settled at 4603 while prices up 7.1 rupee, now Nickel is getting support at 884.4 and below same could see a test of 880.9 level, And resistance is now likely to be seen at 892.6, a move above could see prices testing 897.3.

Trading Ideas:

Nickel trading range for the day is 880.9-897.3.

Nickel gained taking positive cues from comments of Indonesian government’s official who said that the government has no plans to change the ore export ban rule.

A report showed China’s new credit increased to a record last month, boosting demand prospects for industrial metals

Markets volatility weakened due to the dearth of any major news and trading suspension for US Presidents’ Day.