Natural gas futures traded lower on June 21 on easing demand in coming weeks amid mixed weather outlook. The gas prices declined 0.74 percent last week on the MCX.
The energy price traded in the red after a gap-down start tracking weak global cues.
On the MCX, natural gas delivery for June fell by Rs 2.40, or 1.01 percent, to Rs 236.40 per mmBtu at 14:33 hours with a business turnover of 9,674 lots.
Gas delivery for July declined Rs 2.30, or 0.95 percent, to Rs 238.60 per mmBtu with a business volume of 10,215 lots.
The value of June and July contracts traded so far is Rs 367.80 crore and Rs 147.89 crore, respectively.
He advised his clients to buy MCX NATURAL GAS JUNE in the range of Rs 230-235 for the target of Rs 250-260 with a stop loss below Rs 220.
“Short-term momentum is negative as the fast stochastic generated a crossover sell signal and moved from overbought to neutral. Traders should keep an eye on buy on dips opportunity in MCX Natural gas future from the support level around Rs 234.70 – 235.10. For this Long position, traders should keep stop loss around Rs 230.70 and aim the target at 242.70 for the coming week,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
In its weekly report, Baker Hughes said the number of rigs drilling natural gas in the US rose by 1 to 97 rigs for the week to June 18.