Besides, an encouraging trend copper and other base metals in the global markets supported the upside.
At the Multi Commodity Exchange, nickel for delivery in March gained Rs 1.80, or 0.20 per cent, to Rs 922.30 per kg in business turnover of 63 lots.
The April contract rose by Rs 1.60, or 0.18 per cent, to Rs 914.90 per kg in 1,712 lots.
Market analysts said apart from increased domestic demand from alloy-makers, firmness in copper and other base metals at the London Metal Exchange also influenced nickel futures here.