Natural gas futures traded marginally higher on August 10 as participants increased their long position as seen by the open interest. The gas price had declined 2.59 percent yesterday on the NYMEX.
The energy commodity traded in the positive territory after a gap-up start in the afternoon session, despite subdued global cues.
On the MCX, natural gas delivery for August gained Rs 0.40, or 0.13 percent, to Rs 301.40 per mmBtu at 14:23 hours with a business turnover of 12,174 lots.
Gas delivery for September rose Rs 0.20, or 0.07 percent, to Rs 303.00 per mmBtu with a business volume of 3,095 lots.
The value of August and September's contracts traded so far is Rs 542.62 crore and Rs 42.66 crore, respectively.
MCX iCOMDEX Natural Gas Index was up 2.10 points or 0.04 percent to 3,673.72.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started weaker this Tuesday morning and early afternoon in Asian trade. Technically, NYMEX Natural Gas could trade in a range of $3.900-$4.100 levels.”
On the domestic front, MCX Natural Gas August holds strong support near Rs 297-294 levels. Resistance is at Rs 304-307 levels”, Iyer noted.
The weather is expected to be warmer than normal throughout most of the north part of the United States for the next 2-weeks and capped downside.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, “MCX Natural gas has been trading marginally sideways range since past evening session. The price has dropped to 50% of Fibonacci retracement placed near psychological support at Rs 300 in the last session and sustained above that”
Technicals
The commodity has been trading higher than 20, 50, 100 and 200 days' moving averages but lower than the 5-day moving averages on the daily chart. The momentum indicator RSI is at 60.38, which suggests buying in the price.
Geojit Financial Services said, “Corrective selloffs are likely as long as Rs 313 remain caps the upside. A direct rise above the same may take prices further high.”
At 0900 GMT, the natural gas price dropped 0.79 percent at $4.02 per mmBtu in New York.
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