Aluminium futures has been on a decline over the past few weeks. The August contract is currently trading at ₹253/kg.
The contract started to fall after facing a barrier at ₹256 last week. That said, there are supports ahead at ₹250 and ₹248 which can limit the downside. Also, the trend has been bullish since early May.
Therefore, the recent decline may only be a corrective move, and aluminium futures (Aug) might resume the rally from either ₹250 or ₹248.
Given the current price action, we expect the contract to see a drop to ₹248 before the bulls regain traction. In such a case, aluminium futures might bounce off ₹248 and retest ₹256.
However, if the support at ₹248 is breached, the short-term outlook can turn negative and could trigger a fall to ₹240.
Overall, irrespective of whether the trend will remain bullish or turn bearish, from the current level, the August aluminium futures is likely to witness its price dropping to ₹248.
Trade strategy
Short aluminium futures (Aug) at ₹253. Target and stop-loss can be ₹248 and ₹255.50 respectively.
Published on July 31, 2025
