Nickel settled up 0.98% at 1144 and have scope for further gains as third quarter industrial activity ramps up and given China's depleting stockpiles since Indonesia banned exports of nickel ore in January. Indonesia has no plans to wind back a seven-month old ban on exports of unprocessed nickel ore and bauxite that has led to billions of dollars in planned investments in smelters, top government officials said this week. Nickel prices were targeting an average of $22,000 in the fourth quarter, according to Societe Generale, which represents a 17 percent advance from current levels of $18,675 a tonne. LME nickel has already gained 34 percent this year. Lastweek Nickel posted the biggest decline among the four industrial metals, closing the week at $18,344. Even though banks are revising their nickel price targets due to the ore export ban in Indonesia, a monthly report of AME Group research revealed that the excessive inventory levels counter the supposedly tightening nickel market. Investors will be looking ahead to some Fed speeches and data on U. S. retail sales and consumer sentiment during this week. The U. S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due. Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data. Technically market is under fresh buying as market has witnessed gain in open interest by 15.99% to settled at 4941 while prices up 11.1 rupee, now Nickel is getting support at 1131.8 and below same could see a test of 1119.5 level, And resistance is now likely to be seen at 1151.6, a move above could see prices testing 1159.1.

Trading Ideas:

Nickel trading range for the day is 1119.5-1159.1.

Nickel prices ended with gains as traders fretted about supply shortfalls

Indonesia has no plans to wind back a seven-month old ban on exports of unprocessed nickel ore

The ban on nickel ore exports changed the landscape of the global nickel market, constricting supply, sending prices soaring.