Natural gas futures dropped to Rs 205.20 per mmBtu on September 28 as participants increased their short positions as seen by the open interest. Natural gas had gained 8.55 percent last week on the MCX.
The number of rigs drilling natural gas in the US fell by two to 91 last week.
In the futures market, natural gas for October delivery touched an intraday high of Rs 208 and an intraday low of Rs 205.10 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 181.50 and a high of Rs 221.
Natural gas delivery for September slipped Rs 4.10, or 1.96 percent, to Rs 205.20 per mmBtu at 14:49 hours IST with a business turnover of 9,125 lots.
Natural gas delivery for October edged lower Rs 3.10, or 1.27 percent at Rs 240.70 per mmBtu with a business volume of 1,776 lots.
The value of October and November’s contracts traded so far is Rs 983.78 crore and Rs 32.87 crore, respectively.
MCX Natural gas price is expected to trade negatively with resistance at Rs 211 level and intermediate resistance at Rs 209 level, according to Motilal Oswal. The brokerage firm advised its clients to sell on rallies targeting lower support at Rs 205-202 zone.
At 09:22 (GMT), the natural gas price was down 1.10 percent quoting at $2.77 per mmBtu in New York.