Nickel settled up 0.97% at 852.90 after China announced November PPI, while LME nickel prices inching down and leveling out at USD 13,750/mt. Data released Friday showed that the U. S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000. The unemployment rate fell to a five-year low of 7.0% from 7.3% in October. The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18. Investors looked ahead to key U. S. economic data later in the week to further gauge the strength of the economy and the need for stimulus. Data released earlier showed that consumer price inflation in China rose 3% in November, in line with expectations and slowing from 3.2% in October. The inflation report came one day after data showed that China's trade surplus widened to USD33.8 billion last month from a surplus of USD31.1 billion in October, compared to estimates for a surplus of USD21.7 billion. Chinese exports climbed 12.7% from a year earlier, beating expectations for a 7.1% increase and following a 5.6% gain in October. Imports rose 5.3%, compared to forecasts for a 7.2% increase. Market players now looked ahead to a raft of Chinese economic data later in the week, including reports on inflation, industrial production and retail sales. Technically market is under short covering as market has witnessed drop in open interest by -9.55% to settled at 8149 while prices up 8.2 rupee, now Nickel is getting support at 844.8 and below same could see a test of 836.7 level, And resistance is now likely to be seen at 857.4, a move above could see prices testing 861.9.

Trading Ideas:

Nickel trading range for the day is 836.7-861.9.

Nickel gained because of worries about the impact of a planned Indonesian ban on ore exports

Three US Federal Reserve officials stated, emphasizing the importance of QE3 wind-down and the taper off soon is likely

China's November CPI rose 3.0% YoY, below the 3.1% expected and September's 3.2% which was also its highest in eight months.