Naturalgas yesterday settled up 0.91% at 210.10 while Natural gas prices moved lower on NYMEX after milder temperatures appeared set to settle in over parts of the heavily populated eastern US and cut into the demand for the fuel at the nation's thermal electricity plants to power air conditioning in the country's households and businesses. Prices on MCX got support as rupee fell below the key psychological level of 60 to the dollar to a three-week low on Tuesday, posting its biggest fall in a month, as the central bank kept interest rates on hold and failed to announce any additional steps to defend the currency. Meanwhile Weather forecasting services have called for cooler-than-normal temperatures for much of central and eastern reaches of the country for several days now, which sent prices plummeting in recent session though prices began to stabilize on Tuesday. Many investors began to price in below-normal temperatures through the first two weeks of August, which curbed losses. Meanwhile, markets continued to digest Thursday's supply data. The US EIA said in its weekly report that natural gas storage in the US in the week ended July 19 rose by 41bcf, below market expectations for an increase of 46bcf. Total stocks now stand at 2.786tcf, down 399bcf from last year at this time and 46bcf below the five-year average the report said. The report showed that in the East Region, stocks were 120bcf below the five-year average, following net injections of 25bcf. Stocks in the Producing Region were 45bcf above the five-year average of 980bcf after a net injection of 12bcf. Technically market is getting support at 207.2 and below same could see a test of 204.3 level, And resistance is now likely to be seen at 213.1, a move above could see prices testing 216.1.

Trading Ideas:

Naturalgas trading range for the day is 204.3-216.1.

Natural gas gained despite of expectations of weak demand after forecasts continued to call for cooler temperatures

Many investors began to price in below-normal temperatures through the first two weeks of August, which curbed losses.

Weather forecasting services have called for cooler-than-normal temperatures for much of central and eastern reaches of the country