Nickel settled up 0.74% at 1152.50 as support seen after the update that Indonesia's ban on ore exports will remain in place under the next government as the curbs spur as much as $18 billion in investment in processing plants by 2017, according to the Energy and Mineral Resources Ministry. Mostly Chinese investors are planning at least 64 facilities to process nickel, bauxite and other metals, R. Sukhyar, director general of mineral and coal, said in an interview. Investments reached $4.9 billion so far this year, said Sukhyar, who'll keep his post in the new administration. Nickel is the second-biggest gainer among commodities this year after the largest mined producer barred ore exports to compel investments in local processing. The maintenance of the ban after presidential elections last month is pivotal to predictions for further price increases. Nickel demand will outstrip supply by 97,100 tons in 2015, according to Morgan Stanley, while Goldman Sachs Group Inc. sees a 200,000 ton deficit next year. The ban will cut mined output in Indonesia to 8.9 percent of supply from mines in 2015 from 29 percent last year, Morgan Stanley said in a July 8 report. While prices dropped last month as volume of stockpiles will probably limit gains in prices until the market starts to move into deficit, possibly from 2015. Also users in China are already looking to replace lost supply. Ore imports from the Philippines were 53 percent of total purchases in the first half, from 35 percent a year earlier, customs data show. Technically market is under fresh buying and getting support at 1139.8 and below same could see a test of 1127.2 level, And resistance is now likely to be seen at 1164.5, a move above could see prices testing 1176.6.

Trading Ideas:

Nickel trading range for the day is 1127.2-1176.6.

Nickel's gains were stoked by concerns over tightening supply amid Indonesia's continuing ban on exports of nickel ore.

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

Investors should keep a close eye on Germany's preliminary Q2 GDP growth due for release on Thursday.