At the Multi Commodity Exchange, nickel for delivery in February edged up by Rs 1.40, or 0.16 per cent, to Rs 863.30 per kg in business turnover of 2,980 lots.
Similarly, the metal for delivery in March contracts was trading higher by 90 paise, or 0.10 per cent, to Rs 866.80 per kg in 51 lots.
Analysts said fresh positions created by participants on back of a rise in demand from alloy-makers in the physical market helped nickel prices to trade higher in futures trade.