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At the Multi Commodity Exchange, nickel for delivery in current month contracts rose by Rs 8.20, or 1.13%, to Rs 737 per kg in a business turnover of 2,801 lots.
Metal for delivery in August was also trading higher by Rs 8.20, or 1.11%, at Rs 744.30 per kg in 161 lots.
Analysts said besides rising spot demand, a firming trend at the London Metal Exchange (LME), also boosted prices.
Meanwhile, nickel for delivery in three months at the LME rose 0.7% to $11,580 per tonne. The metal rose 4.9% yesterday, posting the biggest two-day rally since 2012.
