The natural gas futures contract traded on the Multi Commodity Exchange (MCX) is under pressure.
The contract recorded a high of ₹181 per mmBtu on Monday and subsequently tumbled over 8 per cent from there. It is currently trading at ₹166. The outlook is bearish. A fall to ₹160 looks likely now.
Further break below ₹160 can drag the contract lower to ₹155 thereafter.
Traders who have taken short position on the break below ₹168, in line with the call given in this column last week, can hold their position.
Stop-loss can be revised lower to ₹171 from ₹173 for the same target of ₹161. Intermediate bounce to ₹170 can be used to accumulate short position.
MCX Crude oil: The contract continues to trade sideways in the range between ₹2,900 and ₹3,150 per barrel for the fourth consecutive weeks. It is currently poised at ₹3,035. A breakout on either side of this range will decide the next leg of move for the contract.
Traders can continue to stay on the sidelines until the contract breaks out of the range and gives a clear cue on the next trend.
An upside break of this range above ₹3,150 can take the contract higher to ₹3,250 and ₹3,300.
On the other hand, a fall below ₹2,900 will increase the downside pressure and drag the contract lower to ₹2,800 and ₹2,700 thereafter.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.