Aluminium futures: Directional cues missing

Aluminium futures, currently trading at around ₹311 (per kg), has largely been moving sideways since the beginning of February. That is, it has been oscillating between ₹300 and ₹320.

The chart shows that the contract, after hitting a record high of ₹361.25, faced some selling pressure towards the end of last month. While the trend has not turned bearish, the bulls have certainly lost steam. Also, the sell-off on January 29 and 30 hints at bears gaining some traction.

However, as mentioned earlier, aluminium futures is now stuck between the support at ₹300 and resistance at ₹320. Only a breach of either of these levels can confirm the direction of the next leg of trend.

A breakout of ₹320 can lift the contract to ₹340. But if it slips below the support at ₹300, the downswing can extend to ₹280, where aluminium futures could meet a notable trendline support.

Overall, as it stands, there are uncertainties with respect to the trend and so, traders will be better off by avoiding fresh trade in aluminium futures at the current market price.

Trade strategy

Traders with high risk tolerance can short aluminium futures if the price rises to ₹320. Target and stop-loss can be ₹300 and ₹328 respectively.

Published on February 10, 2026