Natural gas futures traded lower on July 29 as the market players await Energy Information Administration (EIA) weekly inventory report later in the day. The gas prices had risen 1.84 percent yesterday on the NYMEX.
The energy commodity traded in the red after a gap-down start, tracking the muted overseas cues.
On the MCX, natural gas delivery for August dropped Rs 3.10, or 1.04 percent, to Rs 294.60 per mmBtu at 14:30 hours with a business turnover of 14,832 lots.
Gas delivery for September slipped Rs 2.60, or 0.87 percent, to Rs 295.60 per mmBtu with a business volume of 1,993 lots.
The value of August and September's contracts traded so far is Rs 994.42 crore and Rs 64.34 crore, respectively.
MCX iCOMDEX Natural Gas Index tumbled 35.44 points or 0.97 percent to 3,602.84.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX natural gas is trading with sideways to marginally bullish trend since the previous session. The price has retraced to 50 percent of the Fibonacci level of the previous decline which was from Rs 305. The price has rebounded ahead of Thursday’s inventory report from the Department of Energy. Expectations are for 47 Bcf build in stockpiles. The resistance is at Rs 297 where support holds near Rs 288-290.”
Geojit Financial Services said, “If the resistance of Rs 302 remains capped, expect a continuation of selling pressure for the day. Else, there are chances of recovery rallies.”
Technicals
The commodity has been trading higher than 20, 50, 100 and 200 days' moving averages but lower than the 5-day moving averages on the daily chart. The momentum indicator RSI is at 65.38, which suggests a buy in the price.
At 09:09 GMT, the natural gas price was down 0.25 percent at $3.95 per mmBtu in New York.
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