Amid a pick-up in spot demand from alloy makers and covering-up of short positions, nickel futures prices rose by 1.31% to Rs 1,009.90 per kg today.
At the Multi Commodity Exchange, nickel for September delivery rose by Rs 13.10, or 1.31%, to Rs 1,009.90 per kg, with a business turnover of 543 lots.
Likewise, the metal for August delivery moved up by Rs 11.40, or 1.15%, to Rs 1,001.50 per kg, with a turnover of 7,674 lots.
Market analysts said better demand from domestic alloy-makers and short-covering influenced nickel futures prices.
However, a weakening trend at the London Metal Exchange after Standard & Poor's downgraded the US long-term credit rating, fueling concerns that an economic slowdown in the second-biggest metal user will reduce demand, capped the gains, they added.
Meanwhile, nickel was trading 1.6% down at $22,140 a tonne on the London Metal Exchange.
