At the Multi Commodity Exchange, nickel for delivery in February declined Rs 7.80, or 0.90 per cent, to Rs 859 per kg in a business turnover of 1,137 lots.
Metal for delivery in March also fell by a similar margin to trade at Rs 863 per kg in 20 lots.
Analysts said the fall in nickel prices was mostly in line with a weak trend in base metals overseas amid easing demand from alloy-makers in the physical market.