Natural gas futures price traded higher on July 19 as participants increased their long position as seen by the open interest. The gas price had declined Rs 4.5 or 1.61 percent last week on the MCX.
The energy commodity traded in the green after a gap-up start, tracking the firm global cues.
On the MCX, natural gas delivery for July surged Rs 3.30, or 1.21 percent, to Rs 276.90 per mmBtu at 14:21 hours with a business turnover of 16,348 lots.
Gas delivery for August rose Rs 3.20, or 1.17 percent, to Rs 276.30 per mmBtu with a business volume of 3,837 lots.
The value of July and August's contracts traded so far is Rs 564.11 crore and Rs 115.69 crore, respectively.
MCX iCOMDEX Natural Gas Index advanced 34.22 points or 1.03 percent to 3,371.85.
NS Ramaswamy, Head of Commodities, Ventura Securities said, “After a strong rally in the recent past, MCX NATURAL GAS prices are in consolidation since last few days. Still, prices are holding above the key averages on the weekly chart. The RSI indicator is also in the positive zone. We may expect the rally to continue on the higher side in the coming sessions. Any dip in the prices can be used as an opportunity to create a long position in the counter.”
He advised his clients to buy MCX NATURAL GAS JULY in the range of Rs 265-Rs 270 for the target of Rs 300-Rs 320 with a stop loss below Rs 250.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Natural gas is trading with a marginally bullish trend. The price has formed a Falling channel pattern on the hourly chart and the past few sessions remained within a channel with some correction. The key support is at 15-SMA of intraday chart placed at Rs 271.90. If the price breaks above the resistance of Rs 280, we may anticipate more bull run towards Rs 285 by evening session.”
The gas price has been supported by warmer than normal weather in most parts of the United States.
In its weekly report, Baker Hughes said the number of rigs drilling natural gas in the US rose by 3 to 104 rigs for the week to July 16 against the expectation of 102 rigs.
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 RSI is at 65.33, which suggests bullish movement in the price.
At 09:05 GMT, the natural gas price was up 0.38 percent at $3.68 per mmBtu in New York.
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