Natural gas futures, currently trading at ₹375 per mmBtu, lost nearly 23 per cent last week. But from a broader picture, the contract has been rallying since the final week of August.
The uptrend began on the back of the support at ₹230; after the contract marked a high of ₹494.90 on December 5, it saw a sharp decline and is now hovering around ₹375.
The 50 per cent Fibonacci retracement level of the recent uptrend lies at ₹362. Therefore, the price band of ₹362-375 is a support band. The bulls can regain traction on the back of this and witness another leg of rally.
A rally from the current level can potentially lift natural gas futures to ₹550 first and then possibly to ₹600.
On the other hand, if the contract breaches the support at ₹362, it can extend the decline to ₹330, a support. Subsequent support is at ₹300.
Overall, we expect natural gas futures to regain traction and move up from the current level.
Trade strategy
Buy natural gas futures (December) now at ₹375. Place stop-loss at ₹350. When the contract rises to ₹475, raise the stop-loss to ₹425. Book profits at ₹550.
Published on December 15, 2025
