Natural gas futures scaled fresh high for the June series in the intraday trade on June 11 on the MCX as participants raised their bullish bets as seen by the open interest. The gas prices had gained 0.6 percent June 10 on the NYMEX.

The energy price traded in the positive territory after a gap-up start in the afternoon session on strong overseas trend.

On the Multi-Commodity Exchange (MCX), natural gas delivery for June soared by Rs 8, or 3.49 percent, to Rs 237.20 per mmBtu at 14:36 hours with a business turnover of 25,209 lots.

Gas delivery for July edged higher by Rs 7.80, or 3.38 percent, to Rs 238.70 per mmBtu with a business volume of 5,031 lots.

The value of June and July contracts traded so far is Rs 704.72 crore and Rs 88.97 crore, respectively. 

MCX iCOMDEX Natural Gas Index increased 96.55 points or 3.43 percent to 2,908.08.

Sunand Subramaniam, Senior Research Associate, Choice Broking said, “Fundamentally for the week ahead, we are estimating MCX Natural Gas futures to trade bullish in expectancy of steady supplies, higher demand/usage and a small rise in inventories observed on a weekly basis. Natural gas inventories have showcased a seasonal rise to 3,081 BCF, higher compared to previous reported inventories of 2,983 BCF.”

“On the other hand, the US CPC further expects warmer weather conditions for the next 6-10 days which is expected to bring bullish trend in the prices during the week ahead. Overall, we expect a bullish trend in MCX Natural Gas futures in the coming week”, he said.

Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started firm this Friday morning and early afternoon Asian trade. Technically, NYMEX Natural Gas has important resistance at $3.224 and  could move towards $3.334 levels. Supports are at $3.185- and $3.118.”

On the domestic front, MCX Natural Gas June holds strong support near Rs 227- Rs 225 levels. Resistance is at Rs 231-Rs 233 levels, Iyer added.