In addition, rising demand at domestic spot markets from alloy-makers also supported the upside.
At the Multi Commodity Exchange, nickel for delivery in current month rose by Rs 3.70, or 0.45 per cent, to Rs 818 per kg in business turnover of 350 lots.
Metal for delivery in June was up by a similar margin to trade at Rs 825.10 per kg in business volume of 56 lots.
Market analysts said the metal gained after a firming at the London Metal Exchange (LME) where entire base metals strengthened as better-than-expected US new home sales and gains in Chinese industrial profits boosted the outlook for demand in the world's biggest metals consumers.