Nickel market under long liquidation; Support seen at 937.1
MCX Zinc likely to trade between 176.5-182.9 levels
Copper market under fresh selling; Support seen at 422.6
MCX Cotton under long liquidation
NCDEX Cardamom may trade between 1141.4-1155.4 levels
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by -12.09% to settled at 3177 while prices up 2.1 rupees.
Now MCX Natural Gas is getting support at 191.2 and below same could see a test of 189.7 levels and resistance is now likely to be seen at 193.5, a move above could see prices testing 194.3.
Natural Gas prices ended with gains, on forecasts for continued warmer-than-normal weather though mid-August. Price volatility has been low as the market cannot decide whether to fall because production is at record levels or rise because storage is at a vast 20 percent deficit compared with the five-year (2013-2017) average.
The weather would be the determining factor that will ultimately move futures prices. Temperatures across much of the country, however, have remained mostly steady at above-normal levels since the start of June and are forecast to remain there through at least mid August.
Production in the Lower 48 U.S. states averaged a record-high 80.9 billion cubic feet per day over the past 30 days. On a daily basis, output this week slipped as low as 80.6 bcfd after hitting an all-time high of 81.5 bcfd on July 21, according to data.
Utilities likely added 51 billion cubic feet of gas to storage during the week ended July 27. That compares with increases of 18 bcf during the same week last year and a five-year average build of 43 bcf for the period.
The increase for the week ended July 27 would boost stockpiles to 2.324 trillion cubic feet, leaving inventories 19.1 percent below the five-year average of 2.873 tcf for this time of year and the lowest for the week since 2014.
Trading Ideas:
–Natural gas trading range for the day is 189.7-194.3.
–Natural gas rose after data showed that supplies in storage rose much less than forecast last week.
–The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 24 billion cubic feet.
–Total natural gas in storage currently stands at 2.273 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
Courtesy: Kedia Commodities
Source: Commodityonline.com
