Natural gas witnessed sharp volatility in the last few days which could subside with the expiry of October contract. Mixed factors may keep price choppy however the general bias may be on the downside, said Kotak Securities.
Natural gas futures declined to Rs 203.90 per mmBtu on September 29 as participants increased their short positions, seen by the open interest. Natural gas had slipped 0.4 percent yesterday on the NYMEX index.
Natural gas rebounded sharply last week amid position squaring ahead of contract expiry. The momentum, however, is weakening due to mixed cues.
Natural gas price has been supported by the recovery in LNG exports with easing storm activity in Atlantic and smaller than average rise in US gas stocks.
In the futures market, natural gas for October delivery touched an intraday high of Rs 205.90 and an intraday low of Rs 203.20 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 October slipped Rs 1.20, or 0.59 percent, to Rs 203.80 per mmBtu at 14:52 hours IST with a business turnover of 10,547 lots.
Natural gas delivery for November gained Rs 0.50, or 0.21 percent at Rs 241.40 per mmBtu with a business volume of 1,969 lots.
The value of October and November’s contracts traded so far is Rs 1,088.87 crore and Rs 27.88 crore, respectively.
Natural gas witnessed sharp volatility in the last few days which could subside with the expiry of October contract. Mixed factors may keep price choppy however the general bias may be on the downside, said Kotak Securities in a note.
At 09:25 (GMT), the natural gas price was down 1.54 percent quoting at $2.75 per mmBtu in New York.For all commodities related news, click here