MCX settled up 3.13% at 672.60 gained in the line of expectation tracking LME nickel closed up 3.2 per cent at SUS1O.293 a tonne driven higher by gains in the steel sector after a cyclone in Australia damaged transport routes for coking coal. Overall base metals are maintaining it's gain ahead of a meeting between U.S. President Donald Trump and China's President Xi Jinping, supported by Chinese demand at the start of the seasonally strongest quarter for industrial metals.
Prices came under pressure last week from indications that a number of production outages that had driven prices sharply higher in February were coming to an end. U.S. stocks rose after data from payrolls processor ADP showed private employers added 263,000 jobs in March, more than the number they hired in February and well above economists' expectations.
Wider markets are treading water ahead of the release of minutes later on Wednesday of the Federal Reserve's meeting, and a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping this week. Developing Asia is on track to post its slowest annual growth in 16 years this year as it adjusts to China's rebalancing and possible spillovers from global policy uncertainty, the Asian Development Bank said.
The Manila-based lender kept at 5.7 percent this year's growth forecast for developing Asia, which groups 45 countries in the Asia-Pacific region. That would be the region's weakest expansion since it grew 5.0 percent in 2001.
Technically market is under short covering as market has witnessed drop in open interest by -13.52% to settled at 25838, now Nickel is getting support at 659.5 and below same could see a test of 646.4 level, And resistance is now likely to be seen at 679.6, a move above could see prices testing 686.6.