Nickel futures traded 0.69 per cent lower at Rs 710.40 per kg today as participants reduced their exposure to book profits.
However, a firming trend overseas, restricted the gains.
At the Multi Commodity Exchange, nickel for delivery in July fell Rs 4.90, or 0.69 per cent, to Rs 710.40 per kg, in a business turnover of 1,452 lots.
Also, metal for delivery in August was trading Rs 4.60, or 0.64 per cent lower at Rs 716.70 per kg in 857 lots.
Globally, nickel for delivery in three months rose 3.3 per cent to settle at USD 10,695 per tonne at the London Metal Exchange (LME) yesterday.
Market analysts said profit-booking and trimming of positions ahead of expiry mainly weighed on nickel futures.
