Natural gas futures were steady on August 25 as participants increased their long position as seen by the open interest. The gas prices had fallen 1.2 percent yesterday on the NYMEX.
The energy commodity traded in the flat territory after a gap-down start in the afternoon session, tracking a muted global cues.
On the MCX, natural gas delivery for September was flat at Rs 290.80 per mmBtu at 14:19 hours with a business turnover of 10,613 lots.
Gas delivery for October dipped Rs 0.20, or 0.03 percent, to Rs 296.20 per mmBtu with a business volume of 1,730 lots.
The value of September and October’s contracts traded so far is Rs 531.88 crore and Rs 22.00 crore, respectively.
MCX iCOMDEX Natural Gas Index was unchanged at 3,535.86.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas oscillated back and forth as the $ 4 level remained a source of volatility. MCX Natural gas is trading near Rs 290. If it sustains below Rs 288 levels, then it could trigger further selling towards Rs 282-278 levels.”
Weighing on the gas price are demand concerns as forecasts are pointing to less severe weather which may limit cooling demand.
Technicals
The commodity has been trading higher than 5, 50, 100, and 200 days’ moving averages but lower than the 20-day moving averages on the daily chart. The momentum indicator RSI is at 50.96, which suggests a sideways movement in the price.
Natural gas may continue to trade in a broad range amid a lack of fresh triggers. The general bias may be on the downside amid increasing demand concerns, said Kotak Securities.
At 0855 GMT, the natural gas price was mildly lower at $ 3.90 per mmBtu in New York.
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