Comments
The near-term outlook for natural gas price is bearish. The Natural Gas Futures contract traded on the Multi Commodity Exchange (MCX) made a high of ₹400 mmBtu last week and has come off from there. It is currently trading at ₹355. The contract has been struggling to break above the psychological ₹400 mark since the beginning of the year. This leaves the chances high for the contract to fall towards ₹320-₹315 in the next one-two weeks. Support is at ₹330. A break below it will trigger the above-mentioned fall. Resistances are at ₹380, ₹390 and ₹400.
Related Stories
GAIL declares record dividend for FY22
The total dividend payout will be ₹2,220.19 croreTraders with a short-term perspective can go short at current levels. Accumulate shorts on a rise at 375. Keep the stop-loss at ₹393. Trail the stop-loss down to ₹348 as soon as the contract falls to ₹337. Move the stop-loss further down to ₹338 as soon as the contract touches ₹331 on the downside. Book profits at ₹325. The MCX Natural Gas futures contract will have to breach ₹400 decisively in order to negate the above-mentioned bearish view. In that case the contract can rise to ₹440-₹450. On the other hand, if the contract breaks below ₹315, the downside pressure can intensify. Such a break can then drag the contract down to ₹300 and ₹280 thereafter. Overall, ₹315-₹400 is the broad range of trade. Within this the contract can now come down towards the lower end. A breakout on either side ₹315-₹400 will then determine the next leg of move.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.