Natural gas futures jumped on September 6 and made a fresh 52-week high during intraday on the MCX as participants raised their long bets as seen by the open interest. The gas prices had soared 6.13 percent last week on the MCX.
The energy commodity extended gains to trade at the day’s high after a gap-up start, tracking the firm global trend.
On the MCX, natural gas delivery for September climbed 5.60, or 1.64 percent to Rs 347.30 per mmBtu at 14:28 hours with a business turnover of 16,406 lots.
Gas delivery for October rose Rs 5.60, or 1.62 percent, to Rs 351.70 per mmBtu with a business volume of 4,677 lots.
The value of September and October's contracts traded so far is Rs 554.35 crore and Rs 46.75 crore, respectively.
MCX iCOMDEX Natural Gas Index advanced 68.09 points or 1.64 percent to 4,222.85.
Geojit Financial Services said, “Bullish outlook to continue while prices stay above Rs 318. A close below Rs 303 is a sign of further weakness.”
In its weekly report, Baker Hughes said the number of rigs drilling natural gas in the US climbed by 5 to 102 rigs for the week to September 3.
Also read: Natural gas prices gain over 6% this week; experts expect further upside
Technicals
The commodity has been trading higher than 5, 20, 50, 100, and 200 days' simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 75.65, which suggests an overbought level in the price.
At 0912 GMT, the natural gas price was up 1.19 percent at $4.76 per mmBtu in New York.
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