Nickel futures rose by Rs 3.90, or 0.39 per cent, today on rising demand from alloy makers in the spot market.
At the Multi Commodity Exchange, nickel for delivery in October month recovered by Rs 3.90 to Rs 1,013.70 per kg in a turnover of 29 lots.
Likewise, the metal for delivery in August also gained Rs 3.40, or 0.34 per cent, to Rs 1,003.60 per kg, with a business turnover of 12,445 lots.
Market analysts said nickel prices recovered mainly due to strong demand from alloy makers at the physical market. However, fall in its prices at the London Metal Exchange capped gains.
Nickel was 0.3 per cent lower at $21,600 a tonne in early trade today at LME after weak US economic data signaled slower industrial metals demand.