Fundamental Analysis

Dull demand from the overseas and domestic buyers will keep jeera prices rangebound with negative bias in the short term (till mid of September).

However, prices in the international market of Syrian origin are being offered at higher rates than Indian origin. This will help prices to find support and strengthen in the medium term (September mid onwards).

Also, there are lower stocks in the domestic market till the fresh arrivals expected in the month of March which will also add to the gains.

In the medium term to long term (September mid onwards), Jeera prices will depend on the demand from the overseas and domestic buyers and stocks of Jeera with the major producers.

Spread between September and October contract is at Rs.205 as compared to Rs.186 the previous day.

Technical Analysis

Prices closed below its 10-Day and its 20-Day EMA indicating downward trend.

The 14-Day RSI is at 37 and is neutral region.

Outlook

Jeera prices in the intraday will trade sideways due to lacklustre demand from domestic and overseas buyers. In the short term (till mid of September), trend will depend on jeera price parity of various origins in international market. In the medium to long term (September mid onwards) prices are likely to take cues from stocks with major producing nation such as India, Syria and Turkey.

Courtesy: Angel Commodities

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