The July contract, now trading at ₹275, has lost nearly 12 per cent so far in July. | Photo Credit: hanafichi

Natural gas futures (₹275/mmBtu) have been bearish of late. The price action shows a bearish inclination, and further decline is likely in the upcoming sessions.

The July contract, now trading at ₹275, has lost nearly 12 per cent so far in July. The contract has been oscillating between ₹273 and ₹284 since the beginning of last week. However, it will retain the bearish outlook so long as the price stays below ₹284.

We forecast natural gas futures to soon breach the support at ₹273 and witness another leg of the downtrend, possibly dragging the contract to ₹250, a potential support level. Subsequent support levels are ₹240 and ₹230.

On the other hand, if natural gas futures recover and break out of the ₹284 level, it can extend the uptick to the ₹ 295-300 price band. Resistance above ₹300 is at ₹315.

Overall, the chart indicates that natural gas futures can see a decline from the current level. 

Last week, we suggested shorting natural gas futures at an average price of ₹280. Retain this trade and maintain the stop-loss at ₹295. When the contract slips to ₹271, tighten the stop-loss to ₹276. Revise the stop-loss lower to ₹268 and ₹258 when the price touches ₹263 and ₹255, respectively. Exit the short positions at ₹252.

Published on July 20, 2026