MCX Nickel under fresh buying; Resistance seen at 923.2
MCX Aluminium likely to move in a range of 148.1-155.7
MCX Menthol Oil under long liquidation; Support seen at 1660.6
MCX Cotton market under short covering
Crude Oil market under fresh buying; Support seen at 5380
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 48.16% to settled at 5965 while prices up 10.1 rupees.
Now MCX Natural Gas is getting support at 222.2 and below same could see a test of 216.4 levels and resistance is now likely to be seen at 231.3, a move above could see prices testing 234.6.
Natural Gas on MCX settled up 4.63% at 228.1 on expectations that hotter-than-normal weather for the next two weeks will increase cooling demand, offsetting record production.
Latest weather models show above-normal temperatures through mid-October driving electric demand estimates higher than forecasts from late last week.
Forecasted demand in the Lower 48 states for the forthcoming week at 76.9 billion cubic feet per day (bcfd), higher than the 76.3 bcfd forecast for the current week, and 76.7 bcfd the prior week.
The U.S. Energy Information Administration (EIA) said utilities added a much smaller-than-expected 46 billion cubic feet (bcf) of gas into storage during the warmer-than-usual week ended Sept. 21. If estimates are on target, the build would take stockpiles to 2.785 trillion cubic feet (tcf), the lowest for the week since 2003.
That would be about 19 percent below the same week a year ago and nearly 18 percent below the five-year average. Production in the Lower 48 U.S. states averaged a record high 85.2 billion cubic feet per day (bcfd) during the past 30 days.
On a daily basis, output rose to an all-time high of 86.4 bcfd on Sept. 24, according to data. The 8 to 14 day weather outlook that has spooked short-sellers into abandoning their positions established late last week following the release of the lower-than-expected injection into the storage during the week-ending September 21.
Trading Ideas:
–Natural Gas trading range for the day is 216.4-234.6.
–Natural gas rose on expectations that hotter-than-normal weather for the next two weeks will increase cooling demand, offsetting record production.
–Latest weather models show above-normal temperatures through mid-October driving electric demand estimates higher than forecasts from late last week.
–Production in the Lower 48 U.S. states averaged a record high 85.2 billion cubic feet per day (bcfd) during the past 30 days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
