However, gains in base metals at the London Metal Exchange restricted the losses.
At the MCX, nickel for delivery in June fell by Rs 8.20, or 0.88%, to Rs 920.20 per kg, with a business turnover of 5,196 lots.
The July contract declined by Rs 8, or 0.85%, to Rs 930.30 per kg in 416 lots.
Market analysts said sluggish demand from alloy-makers in the spot market, mainly put pressure on the nickel prices at futures trade but a firming trend overseas limited the losses.
Globally, nickel gained 0.9% to $16,380 a tonne on the London Metal Exchange.