Nickel settled up 0.13% at 906.6 as prices were still supported on news as ban on exports of ore from Indonesia came into force. Still, the global nickel market surplus more than doubled to 180,000 tonnes in the first 11 months of 2013 compared with the same period a year earlier, a monthly bulletin from the Lisbon-based International Nickel Study Group (INSG) showed. Market focus undoubtedly will be on the US Fed's interest rate meeting due this Thursday. The mainstream opinions are that the Fed will further wind down its bond purchasing program. It was noting that both UK and the US set forward guidance to raise interest rate, with the former at 7% and the latter at 6.5%. These declining unemployment rates, close to thresholds to raise interest rate, fueled stronger expectations that the BOE and the US Fed would speed up exiting easy monetary policies. LME nickel market opened at USD 14,590/mt last Friday, with the highest and lowest level of USD 14,675/mt and USD 14,400/mt, respectively. Finally, LME nickel market closed at USD 14,490/mt, down USD 100/mt from a day earlier. No major news came out last Friday, but the results of economic data previously released by the US and China pushed down LME nickel, with prices falling below the 10-day moving averages. Jinchuan Group reduced ex-works prices for refined nickel to RMB 96,000/mt, down RMB 500/mt. The US Federal Open Market Committee (FOMC) will be closely watched, and market caution will dominate the market. Now Nickel is getting support at 900 and below same could see a test of 893.5 level, And resistance is now likely to be seen at 913.3, a move above could see prices testing 920.1.

Trading Ideas:

Nickel trading range for the day is 893.5-920.1.

Nickel ended with gains as prices were still supported on news as ban on exports of ore from Indonesia came into force.

The global nickel market surplus more than doubled to 180,000 tonnes in the first 11 months of 2013 compared with the same period a year earlier - INSG.

Jinchuan Group reduced ex-works prices for refined nickel to RMB 96,000/mt, down RMB 500/mt.