Nickel futures traded 0.42 per cent down at Rs 656.20 per kg today as participants cut down their holdings to book profits at current levels.
Besides, sluggish demand from alloy-makers in the domestic spot market too weighed on metal prices.
At the Multi Commodity Exchange, nickel for delivery this month contracts shed Rs 2.80, or 0.42 per cent, to Rs 656.20 per kg in a business turnover of 208 lots.
Also, metal for delivery in the September fell by Rs 2.70, or 0.41 per cent to trade at Rs 661 per kg in five lots.
Market analysts said the fall in nickel prices was mostly due to profit-booking by participants at existing levels amid low demand at the domestic market from alloy-makers.