Naturalgas yesterday settled down -1.68% at 216.30 tracked lower on Thursday on sentiments that milder temperatures that are currently edging out a heat wave over the eastern U.S. will cut into the need for gas-fired electricity generation in the coming weeks. Unseasonably warm summer temperatures in the U.S. normally send prices gaining as businesses and homes ramp up their air conditioners, while milder temperatures have the reverse effect. States in the U.S. Midwest, Northeast and mid-Atlantic regions may see below-normal temperatures next week, which allowed prices to fall. Bullish supply trimmed earlier losses though weather forecasts served as the market's chief weather vane. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 19 rose by 41 billion cubic feet, below market expectations for an increase of 46 billion cubic feet. Total stocks now stand at 2.786 trillion cubic feet, down 399 billion cubic feet from last year at this time and 46 billion cubic feet below the five-year average the report said. The report showed that in the East Region, stocks were 120 billion cubic feet below the five-year average, following net injections of 25 billion cubic feet. Stocks in the Producing Region were 45 billion cubic feet above the five-year average of 980 billion cubic feet after a net injection of 12 billion cubic feet. Technically market is under fresh selling as market has witnessed gain in open interest by 110.84% to settled at 16819 while prices down -3.7 rupee, now Naturalgas is getting support at 213.40 and below same could see a test of 210.50 level, And resistance is now likely to be seen at 220.90, a move above could see prices testing 225.50.

Trading Ideas:

Naturalgas trading range for the day is 210.6-225.6.

Natural gas fell despite a report from the U.S. EIA showing that natural gas supplies rose less than expected last week.

U.S. EIA said in its weekly report that natural gas storage in the U.S. rose by 41 billion cubic feet

Total stocks now stand at 2.786 tcf, down 399 bcf from last year at this time and 46 bcf below the five-year average