MCX Natural Gas steadies after overnight volatility collapse

WHAT HAPPENED MCX Natural Gas traded at 256 INR/mmBtu at 06:37 pm IST, up a marginal +0.04% from the previous close. The micro-gain follows a brutal overnight session marked by a 4.62% collapse to 264.5 INR/mmBtu at 01:27 am IST, erasing a prior 2.65% rally to 282.6 INR/mmBtu at 10:25 pm IST. Broader commodity weakness is evident: gold surged +1.86%, silver +2.43%, copper +0.47%, while crude inched +0.07%. The rupee weakened 0.22% to 95.12 INR, offering marginal support to energy futures.

WHAT IT MEANS The consolidation at 256 INR/mmBtu signals traders have digested the overnight profit-taking shock. Natural gas remains trapped in a volatile 256–264.5 INR/mmBtu band after violent swing reversals. For MCX futures traders, this is a range-bound hold; the currency weakness (USD/INR) provides structural support, but demand signals remain mixed across the commodity complex.

WHAT TO WATCH Watch the 263–264 INR/mmBtu resistance zone. A break above 263.5 INR/mmBtu (yesterday's 11:44 pm high) would confirm stabilization; failure signals a retest of 256 support and potential further downside.