Natural gas futures has been very volatile since the beginning of this month. Nevertheless, currently trading at ₹296 (per mmBtu), the contract has been oscillating between ₹270 and ₹308 for nearly three weeks.

Since the contract is now in a consolidation phase, there is uncertainty with respect to the direction of the next leg of trend.

If the bulls gather strength which leads to the breakout of ₹308, it will turn the outlook positive. In such a case, natural gas futures can rally to ₹350. The uptrend can even extend to ₹375.

On the other hand, if the contract slips below the support at ₹270, it can decline to ₹254 and then may be to ₹242. A fall below ₹242 is unlikely as the price band of ₹242-270 is a strong long-term base. 

Considering the above factors, the direction of the next leg of trend is unclear now.

Trade strategy

Stay out for now. Buy natural gas futures (March) if it breaks out of ₹308. Place stop-loss at ₹295 at first. When the price rises to ₹330, tighten the stop-loss to ₹310. Exit at ₹340. 

Published on March 19, 2026