Nickel settled up 1.26% at 899.10 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. LME nickel prices hovered between USD 14,300-14,400/mt, and soared during European and US trading hours, and finally closing at USD 14,454/mt. China's January FDI surged 16.11% YoY; the Ministry of Industry & Information Technology predicts industry value added in 2014 will be 9.5%, and New York Fed's manufacturing index in February fell short of expectations of 4.48, dropping the most sharply in one and half a year, which is due partially to the severe winter weather in the US. European Central Bank's policy meeting minutes, US January PPI, housing starts and construction permits will be released today. Supported by Indonesian ban on unprocessed ore exports. In China, the People’s Bank of China (PBOC) drained RMB 48 billion from markets through the 14-day repurchase agreement, which is the first time in 8 months and may be related to the country’s enormous lending in January. The Ministry of Commerce reported that actual direct foreign investments totaled USD 10.763 billion in January, up 16.11% YoY and far exceeding market forecasts for a 2.5% rise. This phenomenon suggests that global hot money is flowing in China at a faster pace. Technically market is under fresh buying as market has witnessed gain in open interest by 21.25% to settled at 5581 while prices up 11.2 rupee, now Nickel is getting support at 888.9 and below same could see a test of 878.6 level, And resistance is now likely to be seen at 906.7, a move above could see prices testing 914.2.

Trading Ideas:

Nickel trading range for the day is 878.6-914.2.

Nickel ended with gains supported by Indonesian ban on unprocessed ore exports

Market confidence was depressed as China's central bank resumed reverse repurchasing.

The Empire State manufacturing index fell to 4.48 in February, the biggest fall seen in one and half year and also missing forecast.