Natural Gas Futures Hover Around ₹273/mmBtu Amid Near-Term Consolidation

Natural gas futures stood at ₹273 per mmBtu following a 4.3 per cent gain last week, though the contract began the current week on a weaker note by extending losses from the previous Friday into Monday's trading session.

The September futures contract had earlier broken out of the resistance level at ₹276, reaching a five-week high of ₹286 on August 27. Following that peak, prices moderated, bringing the contract down to its current level around ₹273.

Market observations indicate that ₹270 serves as the nearest support for natural gas futures. A breach of this level could push the decline further toward ₹257. The price band between ₹257 and ₹260 acts as a secondary support zone. Should the contract slip below ₹257, it risks establishing another leg of a downtrend, which could potentially drag prices down to ₹238.

Conversely, if the futures recover from current levels, immediate resistance is expected at ₹286. A successful breakout above this threshold could trigger a new upswing, potentially lifting the contract toward ₹300, with subsequent resistance identified at ₹320.

Based on current market factors, technical indicators suggest that natural gas futures are likely to consolidate within the range of ₹270 and ₹286 in the near term.

Trading participants with high risk tolerance are evaluating entry points near the current price of ₹273, supported by the ₹270 threshold, while risk-averse traders continue to remain on the sidelines.

"Commodity price movements, particularly in energy sectors like natural gas, require careful risk management and close monitoring of technical support and resistance levels. For businesses and traders operating in energy-dependent markets, understanding these short-term consolidation phases helps in making informed financial decisions and managing operational costs effectively during periods of market volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes