Natural gas futures eased on June 16 after hitting a fresh high for the June series in yesterday's session on profit-booking amid mixed factors. The gas prices had tumbled 3.3 percent yesterday on the NYMEX.
The energy prices pared earlier losses but traded in the red after a gap-down start in the afternoon session on a weak global trend.
On the MCX, natural gas delivery for June slides by Rs 1.40, or 0.59 percent, to Rs 236.30 per mmBtu at 14:42 hours with a business turnover of 17,649 lots.
Gas delivery for July dropped Rs 1.10, or 0.46 percent, to Rs 238.20 per mmBtu with a business volume of 4,521 lots.
The value of June and July contracts traded so far is Rs 453.06 crore and Rs 61.10 crore, respectively.
MCX iCOMDEX Natural Gas Index decreased 19.49 points or 0.67 percent to 2,895.52.
Natural gas rallied sharply in the last few days and a correction was imminent. We may now see a choppy to negative trade ahead of inventory report however a sharp fall may come in only if inventory disappoints, said Kotak Securities.
“Natural gas has been trading in marginally bearish trend trailing below the resistance of 15-SMA of hourly chart placed near Rs 241.20. The key support holds near Rs 235.50 and if it breaks below this level, it will be a resumption of another negative move towards the low of Rs 230,” said Kshitij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Limited.
Market participants will take further cues from weekly EIA nventory data to be released tomorrow.
The gas price has benefitted from a severe heatwave in the western US, supply issues relating to the Enbridge TETCO unit, storm activity, higher global gas and crude oil price due to summer-related demand.
The commodity has been trading higher than 20, 50, 100 and 200-days' simple moving averages and exponential moving averages but lower than the 5-day SMA and EMA on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 60.35, which suggests positive movement in the price.
At 09:22 GMT, the natural gas price was down 0.68 percent at $3.21 per mmBtu in New York.
Geojit Financial Services said, “Corrective selloffs are likely as long as prices stay below the support of Rs 240. Further rallies can be seen only a break of Rs 246.”
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