At the Multi Commodity Exchange (MCX), the March contract edged up by Rs 2.20, or 0.22%, to Rs 988.50 per kg in 296 lots.
Prices rose as speculators enlarged positions, driven by rising demand from alloy-makers in the spot market.
Firming trend in overseas markets supported the uptrend here.
On the London Metal exchange (LME). nickel advanced 0.4% to $18,237 a tonne.