Aluminium futures (May), after hitting a peak of ₹379.65 (per kg) on April 27, saw some moderation in price in the following session. It is currently trading at ₹372.

In last week’s analysis we had forecast the price to drop to ₹350-360 before the aluminium futures resume the next leg of uptrend. But the price action during this period shows that is has formed a base at ₹362 on the back of the 21-day moving average. Therefore, the likelihood of a dip to the ₹350-360 price band has now dropped.

That said, we are likely to see a time correction before the next uptick, which can lift aluminium futures above the prior peak of ₹379.65.

Once the contract breaks out of ₹380, it could swing up to ₹400. On the other hand, if the aluminium futures slips below ₹362, it could extend the decline to ₹350. A break below this can turn the outlook bearish, wherein the price can drop to ₹328.

Trade strategy

Buy aluminium futures (May) when the price drops to ₹362. Place stop-loss at ₹345. When the contract rises to ₹385, alter the stop-loss to ₹370. Book profits at ₹395.

Published on May 5, 2026