Orlando has won two out of three after losing 10 in a row.
The Magic hit 12-of-21 shots from beyond the arc. Nelson was 4-of-6 from long range while scoring 12 points and Arron Afflalo added 13. Orlando went to the foul line just five times, but made all of them.
Indiana, which had won 14 of its previous 18 contests, was 2-of-17 from 3-point range.
The Pacers were led by 20 points and 10 rebounds from Paul George while George Hill had 15.
Celebrity Families of 2014 [PHOTOS]