Fundamental Analysis

NCDEX September Mustard seed futures traded lower on account of weakness in other edible oils and oilseeds.

Weakness in overseas and higher production estimates of domestic kharif oilseeds also provided support to the bears.

Lower production estimates of mustard seed globally as well as domestic also provided support to the bulls. However, record high existing carry over stock of total oilseeds this year as compared to last year are in favor of bears.

Spread between NCDEX September and October contract is Rs 7.35 against previous day of Rs 6.60 per 20 Kg.

Technical Analysis

Prices closed below its 10 Day & its 20 Day EMA, which indicates bearish market sentiments.

14-Day RSI is at 26.65, which is in neutral zone.

Outlook

In the short term perspective, mustard seed prices are expected to trade lower due to weakness in edible oils and higher production estimates of kharif oilseeds. However, in the long term perspective, it is expected to trade lower on account of higher global oilseeds output and huge import of edible oils may provide support to bears.

Courtesy: Angel Commodities

Get Trading Tips that suits your profile and budget

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook