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    HomeNewsBusinesscommoditiesNatural gas futures fall on mixed weather outlook; analysts see further gain

    Natural gas futures fall on mixed weather outlook; analysts see further gain

    The momentum indicator Relative Strength Index (RSI) is at 61.46, which suggests bullish movement in the price.

    Sandeep Sinha
    Mumbai / June 21, 2021 / 15:21 IST
    Natural gas futures traded lower on June 21 on easing demand in coming weeks amid mixed weather outlook. The gas prices declined 0.74 percent last week on the MCX.The energy price traded in the red after a gap-down start tracking weak global cues.On the MCX, natural gas delivery for June fell by Rs 2.40, or 1.01 percent, to Rs 236.40 per mmBtu at 14:33 hours with a business turnover of 9,674 lots.Gas delivery for July declined Rs 2.30, or 0.95 percent, to Rs 238.60 per mmBtu with a business volume of 10,215 lots.The value of June and July contracts traded so far is Rs 367.80 crore and Rs 147.89 crore, respectively. MCX iCOMDEX Natural Gas Index slipped 28.02 points or 0.95 percent to 2,906.48.NS Ramaswamy, Head of Commodities, Ventura Securities said, “MCX NATURAL GAS prices are holding above the key averages. The momentum is still on the higher side in the counter. Prices are likely to cross Rs 250 level in coming days.”Ventura Securities Ventura SecuritiesHe advised his clients to buy MCX NATURAL GAS JUNE in the range of Rs 230-235 for the target of Rs 250-260 with a stop loss below Rs 220.“Short-term momentum is negative as the fast stochastic generated a crossover sell signal and moved from overbought to neutral. Traders should keep an eye on buy on dips opportunity in MCX Natural gas future from the support level around Rs 234.70 – 235.10. For this Long position, traders should keep stop loss around Rs 230.70 and aim the target at 242.70 for the coming week,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.In its weekly report, Baker Hughes said the number of rigs drilling natural gas in the US rose by 1 to 97 rigs for the week to June 18.TechnicalsThe commodity has been trading higher than 20, 50, 100 and 200-days' simple moving averages but lower than the 5-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 61.46, which suggests bullish movement in the price.At 0912 GMT, the natural gas price was down 0.90 percent at $3.18 per mmBtu in New York.

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    Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Sandeep Sinha
    first published: Jun 21, 2021 03:21 pm

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