Compress files while reading data from STDIN

Yes, use gzip for this. The best way is to read data as input and redirect the compressed to output file i.e.

cat test.csv | gzip > test.csv.gz

cat test.csv will send the data as stdout and using pipe-sign gzip will read that data as stdin. Make sure to redirect the gzip output to some file as compressed data will not be written to the terminal.

Yes, gzip will let you do this. If you simply run gzip > foo.gz, it will compress STDIN to the file foo.gz. You can also pipe data into it, like some_command | gzip > foo.gz.

gzip > stdin.gz perhaps? Otherwise, you need to flesh out your question.