Nickel settled up 0.48% at 1163.70 ended with gains to settle at as prices recovered on short covering after prices seen under pressure as trade data signaled prospects for less demand in China. Stocks are high, however, after years of overproduction, which the ban has yet to erode. Nickel has gained nearly 40 percent this year after top exporter Indonesia banned shipments of unprocessed ore in January, sparking fears of shortages developing. Last Friday, the market lacked solid macroeconomic news, as investors were still pondering comments from Fed officials on interest rate hike.

US stocks rebounded slightly, while the US dollar index also rose. Germany's June CPI was 1.0%, flat with market expectations and May's. Financial crisis across Portuguese banking sector did not affect the market significantly. The CSRC amended M&A rules for listed firms and will cancel required approval for buying, selling or swapping assets. The CSRC also made it clear that companies publicly traded on the Second Board Market were not allowed to undertake back door listing, setting a new diverse examination standard.

Nickel bounced off a one-month low on hopes that global economic recovery will increase demand for the metal. Earlier this year, the industrial metal hit multiple-year high as Indonesia banned metal ore exports and Russia was under the risk of additional sanctions from the Western economies. However, supply-side support started to fade early in the summer amid rising LME inventories. Investor are eyeing on China's Q2 GDP is expected to be released this week, fueling bullish sentiment towards base metals prices. Technically market is under short covering and getting support at 1150.6 and below same could see a test of 1137.4 level, And resistance is now likely to be seen at 1172, a move above could see prices testing 1180.2.

Trading Ideas:

Nickel trading range for the day is 1137.4-1180.2.

Nickel prices recovered on short covering after prices seen under pressure as trade data signaled prospects for less demand in China.

Nickel prices dropped as trade data signaled prospects for less demand in China.

Stocks are high, however, after years of overproduction, which the ban has yet to erode.