Natural gas futures (₹321/mmBtu) rallied 14 per cent last week and closed at ₹316 on Friday. Now, the contract is trading above some key levels at ₹308 and ₹318, showing a positive bias.
Supporting the bullish bias, the chart shows that natural gas has been forming higher highs and higher lows since early May and the price is also above the 21-day moving average.
While the outlook is bullish at the moment, there is a chance for natural gas futures to see a corrective decline in price, possibly to ₹308-318 price band.
After witnessing this correction, we expect natural gas futures to see an upswing, which can lift the price to ₹340 and subsequently to ₹370.
On the other hand, if the contract slips below the support at ₹308, we can expect the downtrend to extend to ₹285, a support. Next support is at ₹280.
But as it stands, the outlook is bullish. Nevertheless, traders can buy if there is a dip in price rather than going long at the current level of ₹321.
Trade strategy
Buy natural gas if the price dips to ₹310. Target and stop-loss can be ₹340 and ₹295 respectively.
Published on June 1, 2026
