Natural gas futures has lost about 3 per cent so far this week and is currently trading at ₹240 (per mmBtu). On Tuesday, it made a decisive close below the support at ₹250, hinting at the possibility of further drop in price.
From the current level, the nearest support for natural gas futures is at ₹220 with the subsequent one at ₹200. Given the prevailing price action, which shows a steady bear trend, there is a good chance for the contract to drop to these levels.
On the other hand, if there is a recovery, ₹250 will act as a barrier. A breakout of this can add good strength to the bulls and lift natural gas futures to ₹275, a resistance. Subsequent resistance is at ₹300.
Overall, the breach of the support at ₹250 has changed the outlook bearish for natural gas futures. That said, before the next downswing, the contract might inch up to ₹245 from the current market price of ₹240.
Trade strategy
Short natural gas futures at ₹245 and place a stop-loss at ₹258. When the contract declines to ₹230, revise the stop-loss to ₹240. Book profits at ₹220.
Published on August 20, 2025
