Nickel settled at 877.20 still overall outlook remain firm as report from Indonesia, the biggest producer of mined nickel, plans to prohibit all ore exports after Jan. 12 in an effort to promote local processing. The metal faces near-term upside risk from the ban, Australia & New Zealand Banking Group Ltd. said Dec. 20. Indonesia accounts for 18% to 20% of global nickel supply. Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, as the U. S. recovery deepens. Data on Thursday showed that the number of individuals filing for initial jobless benefits declined by 42,000 to a seasonally adjusted 338,000 last week. Market was expecting U. S. jobless claims to fall by 35,000 to 345,000 from the previous week's revised total of 380,000. Trading volumes are expected to remain light, with many markets closed for the New Year's holiday, reducing liquidity in the market and increasing the volatility. In the week ahead, the U. S. is to publish reports on pending home sales, consumer confidence and jobless claims, as investors attempt to gauge the strength of the world's largest economy. Now Nickel is getting support at 872.9 and below same could see a test of 868.6 level, And resistance is now likely to be seen at 884.2, a move above could see prices testing 891.2.

Trading Ideas:

Nickel trading range for the day is 868.6-891.2.

Nickel dropped on profit booking after better-than-expected U. S. labor market data bolstered investors' outlook on the economy.

State Reserves Bureau is working on plans to buy 100,000 to 150,000 tonnes of nickel in 2014 to take advantage of weak international prices.

China's economic growth is likely to come in at 7.6 percent this year, according to a cabinet report