Natural gas futures slightly dipped to Rs 210.10 per mmBtu on February 23 as participants increased their short positions as seen by the open interest. Natural gas price gained 0.48 percent on February 22 on the NYMEX.
Natural gas pared gain after a gap up open in the afternoon session tracking weak global cues.
The gas prices were pressured by a warmer weather outlook and production coming back online following last week’s cold-related disruption.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started flat this Tuesday morning and trading in red in the early afternoon in Asia trade. Technically, NYMEX Natural Gas could trade in a range of $2.75-3.10 levels.”
“Technically, MCX March Natural gas took resistance near Rs 215 levels and ended on a negative note. Prices now could move lower towards Rs 208-205 support levels while resistance is at Rs 213-217 level”, Iyer noted.
MCX iCOMDEX Natural Gas Index fell 11.86 points or 0.43 percent to 2,766.67.
In the futures market, natural gas for March delivery touched an intraday high of Rs 213.10 and an intraday low of Rs 208.50 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175 and a high of Rs 222.20.
Natural gas delivery for February dropped Rs 0.80, or 0.38 percent, to Rs 210.10 per mmBtu at 14:33 hours IST with a business turnover of 6,938 lots.
Natural gas delivery for April slipped Rs 0.90, or 0.42 percent, to Rs 212.40 per mmBtu with a business volume of 1,662 lots.
The value of March and April’s contracts traded so far is Rs 681.61 crore and Rs 15.40 crore, respectively.
Geojit Financial Services said natural prices consistently traded below Rs 218 and expected the weak bias to continue in the counter. Further rallies are seen only a break of Rs 223.
At 09:07 (GMT), the natural gas price declined 1.63 percent quoting at $2.88 per mmBtu in New York.
For all commodities-related news, click hereDisclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.