Natural gas futures (₹273/mmBtu) gained 4.3 per cent last week. However, it has begun the current week on a weak footing by extending Friday’s decline into Monday’s session as well.
The September futures, which broke out of the resistance at ₹276 last week, hit a five-week high of ₹286 on August 27. But then the price moderated and the contract is now hovering around ₹273.
₹270 is the nearest support for natural gas futures. If this level is breached, it can extend the decline to ₹257. Note that the price band of ₹257-260 is a support. In case the contract slips below ₹257, it can establish another leg of downtrend, potentially dragging the price down to ₹238.
On the other hand, if natural gas futures recover from the current level, it will again face resistance at ₹286. A breakout of this can lead to another upswing, possibly taking the contract to ₹300. Resistance above ₹300 is at ₹320.
Given the above factors, it is highly likely that natural gas futures will consolidate between ₹270 and ₹286 in the near-term.
Trade strategy
Risk averse traders can stay out. But participants with high risk tolerance can buy natural gas futures now at ₹273 since there is a support at ₹270. Place stop-loss at ₹264. Book profits at ₹286.
Published on August 31, 2026
