Natural gas futures has been volatile over the past month. | Photo Credit: cueapi

Natural gas futures has been volatile over the past month. It has largely been oscillating within the broad range of ₹285-318. It fell off the upper boundary of the range over the past few sessions and is now hovering around ₹292/mmBtu.

There are no signs of a recovery from the current level and also, there is room for the contract to decline to the lower boundary of the range.

We expect natural gas (Oct) futures to decline to the support at ₹285 and then see a rebound. A rising trendline coincides with ₹285, making it a strong base. A recovery on the back of this can take the contract back to the resistance at ₹318.

On the other hand, if the contract breaches the support at ₹285, the near-term outlook will turn bearish, possibly taking the price lower to ₹275. Subsequent support is at ₹270.

But overall, as it stands, the likelihood of a rally after touching ₹285 is high. Hence, traders can consider longs on dips.

Trade strategy

Buy natural gas (Oct) futures when the price dips to ₹288 and place stop-loss at ₹275. When the contract rises to ₹305, revise the stop-loss to ₹295. Book profits at ₹315.

Published on October 19, 2026