Aluminium futures hit a three-year high of ₹315.15 (per kg) on Monday. Following this, the price dropped quickly and the price is now at ₹292. But this has not changed the broader positive outlook yet.
From the current level, aluminium futures (January) is likely to drop to ₹287-284 price band, which is a support. If the contract resumes the uptrend from here, it can retest the ₹315.15 and a rally past this level can lift the price to ₹325.
On the other hand, if aluminium futures breaches the support at ₹284, it can extend the downswing to ₹275, where a trendline and the 50-day moving average support coincide.
Only a break below ₹275 can change the outlook bearish. Notable support below this level can be spotted at ₹256.
Overall, following the share rally in recent weeks, there is a good chance for aluminium futures to witness a corrective decline. But the drop is likely to be arrested at ₹284.
Trade strategy
At the current level, the risk-reward ratio is not favourable for both long and short positions. Therefore, we suggest staying out.
Traders can buy aluminium futures if the price dips to ₹287. Target and stop-loss can be ₹315 and ₹278 respectively.
Published on December 30, 2025
