Natural gas futures (December), currently trading at ₹362 per mmBtu, lost 5.2 per cent last week. But in the last few sessions, it has largely been moving sideways, hinting that the recent downtrend has lost momentum.
The chart shows that the price region between ₹350 and ₹375 is a key support and has the potential to turn around the trend. That said, the December futures is nearing its expiry on December 26. Hence, we suggest January contract for trade recommendations.
The January contract, now trading at ₹336, is at a discount compared to current expiry. Nevertheless, it has a support between ₹325 and ₹350. A rally on the back of this can take the price to ₹400 in the short run.
But if it breaches the support at ₹325, there might be a swift decline to ₹300. However, since it is now hovering near crucial support, we suggest considering long positions.
Trade strategy
Buy natural gas futures (January) now at ₹336. Place stop-loss at ₹320. When the contract rises to ₹375, raise the stop-loss to ₹350. Book profits at ₹400.
Published on December 22, 2025
