Nickel futures for April rose by Rs 3.50, or 0.38%, to Rs 926 per kg in 169 lots.
At the Multi Commodity Exchange (MCX), the March contract traded higher by Rs 3.20, or 0.35%, to Rs 918.60 per kg in 1,603 lots.
Increased buying by speculators on pick-up in demand from alloy-maker in the spot market.
Also Read
Firm domestic spot markets trend on the back of increased demand from alloy-makers also influenced prices.
At the London Metal Exchange (LME), nickel advanced 1.7% to $16,815 a tonne.
Morgan Stanley predicting increased demand in China, world's biggest user, that triggered firm overseas trend led to rise in nickel futures.