Natural gas futures were slightly higher at Rs 183.80 per mmBtu on March 24 as participants increased their long positions as seen by the open interest. Natural gas prices had tumbled 2.9 percent yesterday on the NYMEX.
The commodity recovered losses and traded in the positive territory after a gap-down start in the afternoon session tracking positive global cues.
It has been trading higher than 5 and 200 days' moving averages but lower than the 20, 50 and 100 days’ moving average on a daily chart for the April contract. The Relative Strength Index (RSI) is at 41.66 which indicates bearish momentum in the prices.
Natural gas has witnessed mixed trade in the last few sessions amid a lack of clear cues. However, supporting the price is higher US LNG exports, narrowing spread between coal and gas price and general optimism about the US economy.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started this Wednesday morning and turned positive in early afternoon Asian trade. However, the upside will remain limited amid weak demand due to warm weather expectations. Technically, NYMEX Natural Gas could trade in a range of $2.40-2.58 levels.”
“Technically, MCX Natural Gas March has resistance at Rs 189.50 and Rs 193 levels and supports are at Rs 184.30 and Rs 181.30”, Iyer added.
MCX iCOMDEX Natural Gas Index was up 6.48 points or 0.27 percent to 2,428.15.
In the futures market, natural gas for March delivery touched an intraday high of Rs 184.50 and an intraday low of Rs 182.20 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175 and a high of Rs 222.20.
Natural gas delivery for March gained Rs 0.60, or 0.33 percent, to Rs 183.80 per mmBtu at 14:26 hours IST with a business turnover of 8,321 lots.
Natural gas delivery for April jumped Rs 0.50, or 0.27 percent, to Rs 187.40 per mmBtu with a business volume of 7,397 lots.
The value of March and April’s contracts traded so far is Rs 442.39 crore and Rs 71.28 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas traded negative during the last trading day. The weather is expected to be warmer than normal throughout most of the east coast and the mid-west for the next 8-14 days. This should weigh on heating demand. Support for the natural gas is at Rs 176 below it may come down Rs 170 levels whereas resistance for the energy is at Rs 187.
Natural gas prices edged lower in the last trading session and closed around Rs 183 level on an intraday basis. On the hourly chart, the price is trading below 9 and 20 days EMA which is a negative sign said Axis Securities.
Axis Securities
However, on the hourly chart, the immediate support zone can be seen around Rs 181 level as the price is able to respect the mentioned support zone from the last few days. The brokerage firm advised traders to buy natural gas around Rs 181 level for a target of Rs 184 level on an intraday basis.
At 08:59 (GMT), the natural gas price rose 0.80 percent quoting at $2.52 per mmBtu in New York.
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