MCX Natural Gas volatile; range bound trade expected

MCX Natural Gas volatile; range bound trade expected

Higher than expected US natural gas inventory data was seen pressuring the NYMEX futures to certain extent. Working gas in storage was 2,687 Bcf as of Friday, July 5, 2013, according to EIA estimates. This represents a net increase of 82 Bcf from the previous week. 

Natural gas futures for July delivery on India's Multi Commodity Exchange (MCX) is volatile and traders are advised to remain cautious while taking positions for the day, according to our analyst at Commodity Online.

“For intra-day, support for the commodity is seen at 215 and 213 levels while resistance is seen at 222.5 level,” said Tarang Parmar, Research Analyst at Commodity Online.

The commodity is expected to trade range bound for the day as it has been trading in the range of 214-222 since last week.

Depreciation of Indian Rupee against US Dollar was seen supporting the MCX futures to certain extent. MCX natural gas futures for July delivery was seen trading up by 0.55% at Rs.218.10 per mmBtu as of 03.32 PM IST on Wednesday.

NYMEX naturals gas futures for August delivery declined on Wednesday easing three day gains and was seen trading down by 0.50% at $3.658 per mmBtu as of 03.37 PM IST on Wednesday.

However, the weather was warmer than normal across the United States in the last week, according to a data by MDA Weather Services.