Natural gas futures traded higher on Tuesday on firm cues from the Asian market as NYMEX was shut on Monday. The gas price has been gaining for the last three days and rose 5.07 in the same period.
On the Multi-Commodity Exchange (MCX), natural gas delivery for June soared by Rs 3.70, or 1.67 percent, to Rs 225.50 per mmBtu at 14:28 hours IST with a business turnover of 17,920 lots.
Natural gas delivery for July jumped Rs 3.80, or 1.70 percent, to Rs 227.40 per mmBtu with a business volume of 2,353 lots.
The value of June and July’s contracts traded so far is Rs 563.74 crore and Rs 37.97 crore, respectively.
MCX iCOMDEX Natural Gas Index was higher 47.84 points or 1.76 percent to 2,768.60.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, International natural gas futures have started higher this Tuesday morning and early afternoon in Asian trade. Technically, NYMEX Natural gas could trade in a range of $2.95-3.10 levels in the coming session.”
Technically, MCX Natural gas could see a sideways to marginal downside momentum in coming session where Rs 223-227 levels will hold resistance and support is at Rs 219-217 levels”, Iyer noted.
The gas prices were supported by higher crude prices, pickup in summer demand and a third weekly decline in US natural gas rig count indicating a weakening production outlook.
The weather is expected to be warmer in most of the United States thus increasing cooling demand.
Natural gas may remain in a range amid lack of clear cues however hopes of higher weather-related demand may keep prices supported, said Kotak Securities.
Technicals
The commodity has been trading higher than 5, 20, 50, 100 and 200 days' simple moving averages and exponential moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 60.28, which suggests bullish movement in the price.
At 0910 (GMT), the natural gas price climbed 3.52 percent quoting at $3.09 per mmBtu in New York.
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