Nickel settled up 2.48% at 668.80 as fresh data revealed China's import of the base metal had risen almost 3% in August from a year before, and as stocks markets of the world's second-largest economy gained. On the economic front, Chinese exports declined for the second straight month in August even after the devaluation of its currency and successive interest rate reductions. Imports also logged a double-digit decline, signaling some weak domestic demand. China's exports fell 5.5 percent year-on-year in August following the prior month's 8.3 percent decrease. Consequently, China's trade balance showed a surplus of $60.24 billion in August, well above the expected level of $48 billion. While Eurozone economy grew more than initially estimated in the second quarter as strong exports offset a decline in investment. Gross domestic product advanced 0.4 percent sequentially after rising 0.5 percent a quarter ago, Eurostat reported Tuesday. The first quarter growth was the fastest since the same quarter of 2011, when the economy expanded 0.9 percent. However, since the import was still better than what market had expected from China, the base metal markets took a positive note of it. Also the Latest data also revealed the euro zone grew faster than expected in the June quarter (0.4% against the previous estimate of 0.3%) following better expansion in Italy and Greece, helping the market sentiments. Technically market is under short covering as market has witnessed drop in open interest by -11.39% to settled at 20389 while prices up 16.2 rupee, now Nickel is getting support at 653.2 and below same could see a test of 637.7 level, And resistance is now likely to be seen at 677.6, a move above could see prices testing 686.5.

Trading Ideas:

Nickel trading range for the day is 637.7-686.5.

Nickel gains as traders bet China would beef up measures to strengthen its economy after August trade data showed flagging growth.

China's imports tumbled in August, raising concerns about the health of the world's second-largest economy and its contribution to global growth.

Data showed the euro zone economy grew faster than expected in the second quarter, mainly because of faster growth in Italy and Greece.