Natural gas futures fell below Rs 450/mmBtu on October 27 as participants raised their short positions as seen by the open interest. The gas price had fallen 0.27 percent yesterday on the NYMEX.
The energy commodity traded in the red since morning, tracking the weak overseas cues.
On the MCX, natural gas delivery for November declined by Rs 5.60, or 1.24 percent, to Rs 447.30 per mmBtu at 2.49 pm with a business turnover of 5,300 lots.
Gas delivery for December edged lower by Rs 5.60, or 1.22 percent, to Rs 454.70 with a business volume of 1,023 lots.
The value of November and December contracts traded so far stood at Rs 577.49 crore and Rs 33.61 crore, respectively.
MCX Enrgdex dropped by 94 points or 1.40 percent at 6,597 at 2.51 pm. The index tracks the real-time performance of MCX Crude Oil and MCX Natural Gas futures.
“Natural gas price fell slightly yesterday after surging 11% on Monday as the weather pattern in the US has changed, and it is expected to be cooler than normal across most of the mid-West for the next 6-10 days. Near the October highs of $6.69 resistance is seen, while support can be found at $5.60 near the 10-day moving average,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
Traders will take further cues from the Department of Energy weekly inventory report scheduled to be released tomorrow.
Technicals
The commodity has been trading higher than 5, 20, 50, 100, and 200-day simple and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 60.74, which suggests strength in the price.
“Choppy with mild positive bias expected as long as the support of Rs 431 remains undisturbed. Major support is seen at Rs 398,” said Geojit Financial Services.
At 9.29 am GMT, the natural gas price slipped 0.85 percent to $5.95 per mmBtu in New York.
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