Hi,

Yes you can do M.Sc in Physiology after B.Sc in Nursing. For preparation you can refer to the following books:

1. MCQs in Physiology by Varun Malhotra

2. Review of Physiology by Soumen Manna

3. Comprehensive MCQs in Human Physiology by A.K Jain

4. Practical Physiology by Pravati Pal

Also, you can find out some previous year question papers and practice from them. If no question papers are available, solve as many MCQs as you can from the above mentioned books and try to stick to important topics and study those topics with details. 

Hope this helps, good luck!