Natural gas futures, after gaining nearly 15 per cent so far this week, is currently trading at ₹304 (per mmBtu).
While the October contract has seen a sharp rally, it faces a resistance at ₹310. Above this is another barrier at ₹325. Only a clear breakout of ₹325 can turn the outlook.
Since the October contract is nearing its expiry date (October 28), we shall consider the November series (currently trading at ₹358) for analysis and trade recommendation. The equivalent resistance levels for the November contract are at ₹365 and ₹380.
Going ahead, even though natural gas futures can see a fresh breakout, there might be a corrective decline at least if not a resumption in bear trend. So, the November contract can see a dip to ₹320.
But if the contract rallies and breaks out of ₹380, it will open the door for a rally to ₹400.
That said, since the contract is trading near resistance, the likelihood of a decline is high.
Trade strategy
Short natural gas futures (November) at ₹358. Target and stop-loss can be ₹322 and ₹375 respectively.
Published on October 23, 2025
