Sunday, January 25, 2026

Aluminium futures: Wait for a dip and buy

Aluminium futures, which has been rallying for nearly three weeks, appears to have lost momentum. December futures, currently trading at ₹277 (per kg), has a barrier ahead at ₹280.

Considering the current price action, there is a good chance for aluminium futures to see a drop in price. While the broader trend may not turn bearish, the contract is likely to see a temporary blip.

From the current level, aluminium futures might dip to ₹271-270 price band. A recovery on the back of this can lift it to ₹280 and then to ₹285, potential resistance levels.

That said, if the contract breaches the support at ₹270, it can witness a deeper decline to ₹265. Nearest support levels below ₹265 are at ₹256 and ₹250.

Overall, from the current level of ₹277, we expect aluminium futures to see a dip to ₹271-270 and then see a rally to ₹280. The uptrend might extend to ₹285.

Trade strategy

Traders can buy aluminium futures (December) when it dips to ₹271. Place a stop-loss at ₹265. When the contract rises to ₹280, revise the stop-loss to ₹275. Book profits at ₹285.

Published on December 9, 2025

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