Natural gas futures marginally lowered on October 29 as traders raised their bearish bet as seen by the open interest. The gas price had tumbled 7.51 percent on Thursday on the NYMEX.
The energy commodity recovered earlier losses to trade in the red in the afternoon session, tracking a subdued global trend.
On the MCX, natural gas delivery for November fell by Rs 2.20, or 0.50 percent, to Rs 433.50 per mmBtu at 2.45 pm with a business turnover of 4,670 lots.
Gas delivery for December dropped by Rs 2, or 0.45 percent, to Rs 441.70 with a business volume of 963 lots.
The value of November and December contracts traded so far stood at Rs 707.63 crore and Rs 40.91 crore, respectively.
MCX Enrgdex rose by 10 points or 0.15 percent at 6,505 at 2.51 pm. The index tracks the real-time performance of MCX Crude Oil and MCX Natural Gas futures.
“Choppy with positive bias expected as long as the support of Rs 431 remains undisturbed. Major support is seen at Rs 398”, said Geojit Financial Services.
The US Energy Information Administration (EIA) reported that the country's natural gas inventories rose by 87 billion cubic feet (Bcf) for the week ended October 22 against market expectations of an 87 Bcf build.
Natural gas in storage was 3,951 Bcf as of Friday, October 22, 2021, according to the Department of Energy. Stocks were 403 Bcf less at the same time last year and 277 Bcf below the 5-year average of 3,674 Bcf.
The commodity has been trading higher than 20, 50, 100, and 200-day simple and exponential moving averages but lower than the 5-day SMA and EMA on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 55.73, which indicates a positive movement in the price.At 9.29 am GMT, the natural gas price gained 0.50 percent to $5.81 per mmBtu in New York.