Natural gas futures, for nearly three weeks, has been range bound. Currently trading at ₹260 (per mmBtu), it has been oscillating between ₹256 and ₹276.
Prior to the prevailing consolidation phase, the contract was in a downtrend since June 20, after it faced a resistance at ₹360.
But looking at the historical price action, natural gas futures is seen approaching a crucial support at ₹250. This base has been holding well since mid-November 2024.
So, there is a good chance for the contract to rebound. Once it establishes a rally on the back of ₹250, it can rise to ₹280 quickly. The uptrend can extend to ₹300 and ₹325.
However, in case natural gas futures breaches the support at ₹250, it will open the door for another leg of downtrend. Notable support levels that can arrest the decline are ₹220 and ₹200.
Overall, from the current level, we expect the contract to decline to ₹250 and then see a potential recovery to ₹280.
Trade strategy
Buy natural gas futures if its price dips to ₹252. Place initial stop-loss at ₹240. When the contract rises to ₹265, trail the stop-loss to ₹252. On a rally to ₹275, tighten the stop-loss further to ₹268. Book profits at ₹280.
Published on August 12, 2025
