Natural gas futures, currently trading at ₹350 per mmBtu, gained 6.2 per cent last week. The continuous contract has been volatile so far this year and the recent price action shows some weakness.
January natural gas futures is now facing a barrier at ₹355. There is a good chance for the contract to see a fresh round of decline from the current level. Before the expiry, it is likely to touch ₹300.
At ₹300, a key trendline support is present, which can help in the rebound. A recovery from ₹300 can take the price back to ₹400.
But if the support at ₹300 is breached, the medium-term outlook might turn bearish. In such a case, the contract can see a swift downswing to ₹240.
That said, for the short term, the outlook is weak and traders can capitalise on the potential drop in price to ₹300 from the current level of ₹350.
Trade strategy
Short natural gas futures (January) now at ₹350. Place stop-loss at ₹370. When the contract rises to ₹320, raise the stop-loss to ₹340. Book profits at ₹300.
Published on December 29, 2025
