Natural gas futures declined to Rs 191.90 per mmBtu on January 11 as participants increased their short positions as seen by the open interest. Natural gas price had gained Rs 12.40 or 6.69 last week on the MCX.
Natural gas extended decline in the afternoon session after a gap down open and traded near the day’s low.
The number of rigs drilling natural gas in the US rose by 1 at 84 rigs for the week to January 8, said Baker Hughes in a weekly report.
Kshitij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Ltd, said: “Natural gas has traded with a negative note and not able to cross 50 Days SMA which is placed at Rs 203.30 levels during the week. There is another hurricane coming to the northeastern portion of the US in the near term that may support the price from the downside.”
Natural gas has support placed at Rs 192-188 levels whereas resistance is at Rs 199-203, he said.
MCX iCOMDEX Natural Gas Index fell 72.73 points, or 2.98 percent, to 2,364.39.
In the futures market, natural gas for January delivery touched an intraday high of Rs 194.50 and an intraday low of Rs 191.10 per mmBtu on the MCX. So far in the current series, natural gas has touched a low of Rs 167.40 and a high of Rs 255.90.
Natural gas delivery for January edged lower Rs 5.80, or 2.93 percent, to Rs 191.90 per mmBtu at 14:38 hours IST with a business turnover of 9,479 lots.
Natural gas delivery for February slipped Rs 4.80, or 2.46 percent, to Rs 190.60 per mmBtu with a business volume of 2,121 lots.
The value of January and February’s contracts traded so far is Rs 915.60 crore and Rs 25.81 crore, respectively.
At 09:09 (GMT), the natural gas price was down 3.48 percent quoting at $2.60 per mmBtu in New York.
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