Besides, rising demand at domestic spot markets from alloy-makers supported the upside.
At Multi Commodity Exchange, nickel for delivery in February contracts rose 70 paise, or 0.12 per cent, to Rs 578 per kg in business turnover of 20 lots.
Metal for delivery in January was up 60 paise, or 0.11 per cent, to Rs 571.60 per kg in 666 lots.
Market analysts said a firming trend at the London Metal Exchange (LME) where base metals pared the biggest one-day decline since September, as investors assessed the outlook for demand in China this year, mainly led to rise in nickel futures here.