Nickel settled up 0.53% at 869.20 gained for the first time in four days on speculation that demand for the metal used in corrosion resistance in stainless steel will increase. The European Central Bank (ECB) and Bank of England (BOE) both kept their monetary policies unchanged on Thursday. The euro, however, rose sharply, benefiting from comments by the ECB in its press conference. The BOE's decision to maintain its interest rate matched forecasts, but that of the ECB stoked controversies in markets. Markets have high expectations that the ECB will take some measures since the euro zone's inflation continued to decline and its unemployment remained lofty. In its subsequent press conference, the ECB just announced as usual that it would stand ready to take some measures to cope with inflation. US initial jobless claims for last week released overnight were 331,000, less than the estimated 335,000, boosting market sentiment hurt by downbeat ADP employment and fueling hopes of positive US nonfarm payrolls. US shared rebounded considerably, aided by these encouraging economic data. Attention should be focused on US nonfarm payrolls on Friday. Buoyed by last week's encouraging initial jobless claims and ISM manufacturing PMI, the nonfarm payrolls are anticipated to be positive. In addition, the return of Chinese investors from the New Year holiday will also help boost metals markets. Technically market is under short covering as market has witnessed drop in open interest by -14.99% to settled at 5431 while prices up 4.6 rupee, now Nickel is getting support at 862.5 and below same could see a test of 855.7 level, And resistance is now likely to be seen at 876.6, a move above could see prices testing 883.9.

Trading Ideas:

Nickel trading range for the day is 855.7-883.9.

Nickel ended with gains amid speculation expanding production of stainless steel will stoke demand

Markets are now awaiting the release of U. S. nonfarm payrolls data to gauge the strength of the economy and its likely impact on Fed's stimulus tapering.

Chinese markets open after the week-long Lunar New Year holiday, and could provide a boost to the physical market.