MCX Natural Gas slides 2.99% on profit-taking reversal

WHAT HAPPENED MCX Natural Gas fell to 256.6 INR/mmBtu at 12:21 am IST, down 2.99% from the previous close. The decline continues the sharp reversal that began at 01:27 am IST when the contract collapsed to 264.5 INR/mmBtu (-4.62%), erasing the overnight rally to 282.6 INR/mmBtu (+2.65% at 10:25 pm IST). Weakening demand sentiment and profit-taking are driving the pullback, while the rupee strengthened 0.98% to 95.62 INR, adding headwind to dollar-denominated commodity prices.

WHAT IT MEANS The volatility pattern reveals thin conviction in the rally. After the 2.65% overnight spike, traders liquidated positions aggressively, signalling that the energy complex strength witnessed earlier—MCX Crude at +0.25%—lacked follow-through. Natural gas remains caught between structural weakness and cyclical bounces, keeping risk-on positioning tenuous for leveraged traders.

WHAT TO WATCH The 256–260 INR/mmBtu band is now critical support. A break below 256 locks in further downside toward the 250 level; hold above 260 could signal stabilization and a fresh test of the 282.6 peak.