Nickel settled down -0.09% at 1158.1 as inventories rose, giving investors a reminder of an overhang of material despite an Indonesian export ban. However downside was limited after upbeat U. S. jobs data raised the prospect of higher demand for industrial metals. Nickel has gained nearly 40 percent this year after top exporter Indonesia banned shipments of unprocessed ore in January, sparking fears of shortages developing.

Signs of global economic recovery have gathered pace following last week's U. S. jobs data and factory numbers from China that reinforced expectations of a pickup in demand for industrial metals. In the US, wholesale inventories and sales both missed expectations in May. The country’s initial jobless claims for the week ending in July 5 fell by 11,000 to 304,000, below the estimated 315,000, with the four-week moving average hitting its lowest since August 2007. Meanwhile, China’s exports grew by only 7.2% in June, and the country’s imports rose by 5.5%, both short of expectations.

China imported 350,000 mt of unwrought copper and copper semis in the month, down 7.9% and setting a low last seen in April 2013. LME nickel prices opened at USD 19,475/mt overnight, with the high end of the price range USD 19,539/mt, and finding support at USD 19,015/mt. Finally, LME nickel prices closed at USD 19,292/mt, down USD 108/mt from the previous trading day. The market will lack solid macroeconomic news today. Technically market is under fresh selling as market has witnessed gain in open interest by 2.95% to settled at 6143 while prices down -1 rupee, now Nickel is getting support at 1145.5 and below same could see a test of 1132.8 level, And resistance is now likely to be seen at 1168.6, a move above could see prices testing 1179.

Trading Ideas:

Nickel trading range for the day is 1132.8-1179.

Nickel dropped as inventories rose, giving investors a reminder of an overhang of material despite an Indonesian export ban.

However downside was limited after upbeat U. S. jobs data raised the prospect of higher demand for industrial metals.

In the US, wholesale inventories and sales both missed expectations in May.