Natural gas futures, which was charting a sideways trend recently, has breached the nearest notable support, opening the door for further decline.
The July futures is now trading at ₹263/mmBtu and the August contract is at ₹268/mmBtu. Since the July contract will expire on Tuesday (July 28), we shall consider August futures for analysis.
Natural gas August futures breached a support at ₹272 on Monday after witnessing a consolidation between ₹272 and ₹285 in the preceding sessions. Thus, the contract is likely to see another leg of decline. The nearest support levels can be spotted at ₹255 followed by another one at ₹250.
On the other hand, in case the contract rallies, it will face resistance at ₹272 and ₹285. For natural gas futures (Aug) to turn the outlook positive, it ought to break out of ₹285. In this case, it can rise to ₹300, a barrier.
Overall, as it stands, the outlook is bearish.
Trade strategy
We had suggested shorting natural gas futures (Jul) at an average price of ₹280. Since the July contract is set to expire, traders can exit this trade and open a fresh short position in August futures at the current level of ₹268. Target and stop-loss can be ₹255 and ₹268 respectively.
Published on July 27, 2026
