Nickel settled up 3.76% at 693.1 buoyed by improved China sentiment, as the world's biggest consumer of the base metal indicated it would consider further measures to jump-start its slowing economy. The global nickel market is showing little sign of any recovery in the second half of the year. Nickel has also been impacted over the last week by uncertainty over the solidity of the Indonesian ore export ban. There are still headwinds for nickel that are likely to prevent any price improvement before the beginning of 2016. Nickel's recent weak price performance means that any chance of a post-summer restock by stainless steel consumers is highly unlikely. Meanwhile, market sentiment continued to be shaped by expectations that the People's Bank of China will further ease monetary policy. However, the uncertainty stemming from ongoing concerns surrounding the Chinese economy and a looming Fed interest rate hike is set to remain a theme in the market. China's inflation rose to a 12-month high of 2 percent in August from 1.6 percent in July, the National Bureau of Statistics reported Thursday. It was expected to rise to 1.8 percent. Producer prices declined at a faster pace of 5.9 percent annually, following a 5.4 percent drop in July. LME nickel prices opened at USD 9,965/mt on Thursday, and raced up above the 20-day moving average. During European and US trading session, LME nickel prices extended gains and soared to USD 10,475/mt, and closed at USD 10,385/mt, up 3.85%. LME nickel inventories fell 1,362 to 449,682 mt. Technically now Nickel is getting support at 672 and below same could see a test of 651 level, And resistance is now likely to be seen at 706.6, a move above could see prices testing 720.2.

Trading Ideas:

Nickel trading range for the day is 651-720.2.

Nickel gained buoyed by improved China sentiment, indicated it would consider further measures to jump-start its slowing economy.

The global nickel market is showing little sign of any recovery in the second half of the year.

Nickel has also been impacted over the last week by uncertainty over the solidity of the Indonesian ore export ban.