Nickel on MCX settled up 0.9% at 664.60 gained tracking firmness from LME Nickel which ended the day up 0.2 percent at $9,715 a tonne, recovering some lost ground after falling more than 7 percent last week after Indonesia lifted a longstanding export ban on bauxite and nickel ore. However, it remains one of the worst performing base metals so far this year. Nickel prices rose on dollar weakness and hopes that U. S. President Donald Trump's incoming administration would make good on a pledge to boost infrastructure spending in the world's largest economy. In his inauguration speech on Friday, Trump said his administration would "build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation". Price outlook remain weak for Nickel as there were concerns that as Indonesia relaxed its export ban the market would be flooded with new supplies, depressing nickel prices. Meanwhile, the Lunar New Year holiday, starting Jan. 27, is expected to subdue metals demand this month as Chinese factories close, sometimes for two to three weeks. In the week ahead, Trump's policy plans in his first days in office are likely to dominate headlines along with fourth quarter growth from the U. S. on Friday and from the U. K. a day earlier. Tuesday’s data on euro area private sector activity will also be closely watched. Technically market is under short covering as market has witnessed drop in open interest by -9.11% to settled at 22068 while prices up 5.9 rupee, now Nickel is getting support at 659 and below same could see a test of 653.4 level, And resistance is now likely to be seen at 672.6, a move above could see prices testing 680.6.

Trading Ideas:

# Nickel trading range for the day is 653.4-680.6.

# Nickel gained on weaker dollar while still concerns prevails that as Indonesia relaxed its export ban would be flooded with supplies

# Indonesian mines may export up to 5.2 million tons of nickel ore a year under the new rules, about 10% of what the country was exporting before the ban.

# According to WBMS, in the First 11 months of last year there was a nickel deficit of 84,600 mt in the global market.