Nickel on MCX settled up 2.2% at 781.5 getting support from news that the Philippine government will suspend more mines in a fight against environmental degradation. The Philippine government will suspend more mines in a fight against environmental degradation, Environment Secretary Gina Lopez said, a move that could put future supply from the world's top exporter at risk and lift nickel prices. The Southeast Asian nation has already halted 10 of its 41 mines in a campaign backed by President Rodrigo Duterte against what the government says is irresponsible mining. Twenty more are facing possible suspension and the agency in charge of the review may issue a ruling next week. Fourteen of the 20 mines facing suspension are nickel producers, and along with the eight of 10 already halted, they accounted for more than half of the Philippines' nickel ore output last year. Nearly all of the output is shipped to China, where shipments of nickel ore and concentrate from the Philippines have dropped 12.5 percent over January-October. The clampdown began shortly after Duterte assumed office on June 30. He had warned miners to strictly follow tighter rules or shut down, saying the country could survive without a mining industry. Nickel ore inventories at seven major Chinese ports kept falling in the week ending Dec. 2. According to data, inventories at the seven ports were down by 300,000 tonnes on a weekly basis. Technically market is under short covering as market has witnessed drop in open interest by -1.62% to settled at 9117 while prices up 16.8 rupee, now Nickel is getting support at 763.3 and below same could see a test of 745 level, And resistance is now likely to be seen at 793.1, a move above could see prices testing 804.6.

Trading Ideas:

Nickel trading range for the day is 745-804.6.

Nickel gained getting support from news that the Philippine government will suspend more mines in a fight against environmental degradation.

The country has already halted 10 of its 41 mines in a campaign backed by President Rodrigo Duterte.

Nickel ore inventories at seven major Chinese ports kept falling in the week ending Dec. 2.