Aluminium futures (₹384/kg) is on a steady uptrend and the recent breakout adds further strength to the bulls.

The May contract broke out of the resistance at ₹380 last Wednesday, opening the door for further rally. While it moderated from the high of ₹387.20, the price action shows that the bulls are regaining traction and price sustains above ₹380, which henceforth can act as a support.

We expect aluminium futures to establish another leg of rally from the current level, which can lift it to ₹400. If this level is breached, the contract can rise to ₹420.

However, if there is a decline from the current market price, aluminium futures can find support at ₹373, where the 21-day moving average currently lies. Subsequent support is the price band of ₹350-360.

Nevertheless, the prevailing price action shows no sign of a bearish reversal and so, traders can stay on the long side of the trade.

Trade strategy

Last week, we suggested buying aluminium futures (May) when it breaks out of ₹380. Participants who bought the contract based on this can retain the trade. Maintain target and stop-loss at ₹400 and ₹370 respectively.

Published on May 19, 2026