Aluminium futures has been consolidating over the past two weeks. The January futures, currently trading at ₹315 (per kg), has been oscillating between ₹313 and ₹320 since January 12.
The sideways movement indicates that the rally has lost steam. However, the trend has not turned bearish since the price is trading above the 21-day moving average (now at ₹310) and also remains above a support at ₹300.
That said, while the trend may not become bearish, given the sharp rally in the weeks prior to the consolidation, there is a good chance for aluminium futures to witness a corrective decline, possibly to ₹300.
A fresh rally on the back of ₹300 can take aluminium futures to higher highs. On the other hand, if the contract breaches the support at ₹300, it can fall deeper to ₹280.
Trade strategy
Retain the short position that we suggested on January aluminium futures ₹316. Target and stop-loss can be ₹300 and ₹322 respectively.
Note that the January contract expires on January 30 (Friday). So, if neither target nor stop-loss of the above trade is hit, traders can consider rolling over the short position to February futures (now trading at ₹318) on Thursday at the prevailing prices. Target and stop-loss for February contract can be ₹303 and ₹326 respectively.
Published on January 27, 2026
