Natural gas futures on October 13 slumped as participants increased their short positions as seen by the open interest. The gas price had risen 2.99 percent yesterday on the NYMEX.
The energy commodity traded in the negative territory after a gap-down start in the afternoon session, tracking the muted global trend.
On the MCX, natural gas delivery for October fell Rs 5.70, or 1.38 percent, to Rs 408.60 per mmBtu at 1447 hours with a business turnover of 4,289 lots.
Gas delivery for November slides by Rs 5, or 1.17 percent, to Rs 421.50 with a business volume of 2,448 lots.
The value of October and November contracts traded so far is Rs 855.16 crore and Rs 75.68 crore, respectively.
MCX Enrgdex decreased by 30 points or 0.47 percent at 6,327 at 14:48. The index tracks the real-time performance of MCX Crude Oil and MCX Natural Gas futures.
“Natural gas price fell early but rebounded after breaking through support, which is an upward sloping trend line near $5.29. Near $5.75, resistance can be found. MCX Natural gas is trading near Rs 406 with support seen at Rs 397-390 while resistance is at Rs 420-427,” said Kshitij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Limited.
The weather is expected to remain warmer than normal across the United States.
The commodity has been trading higher than 20, 50, 100, and 200-day simple and exponential moving averages but lower than the five-day SMA and EMA on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 53.74, which suggests a sideways movement in the price.
At 0928 GMT, the natural gas price dropped 2.11 percent to $5.38 per mmBtu in New York.
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