Nickel futures for February rose by Rs 1.30, or 0.13%, to Rs 981.90 per kg in 794 lots.
At the Multi Commodity Exchange (MCX), the March contract traded higher by Rs 1.60, or 0.16%, to Rs 987.30 per kg in 37 lots.
The industrial metal moved up as speculators enlarged their positions.
Pick-up in domestic demand also supported the trade.
Firming trend in base metals overseas, as data showing manufacturing in China expanded for the fourth consecutive month fuelled optimism that demand for the metals may improve in the world's largest user, influenced the nickel futures here.
Increased demand from domestic alloy-makers also supported the upside.
