Last Updated : June 21, 2010 12:35
Mustard Seed gain as short covering takes place
Fundamental Analysis
NCDEX July Mustard seed futures closed slightly higher on short covering after Friday’s sharp fall.
However, weak fundamentals of oilseeds (record high carry over stock this year as compared to last year) may drag prices down in medium term.
Domestic Kharif oilseeds area so far been covered on 0.27 lakh hectares against 0.47 lakh hectares during corresponding period a year ago, as on May 28, 2010.
The area under Groundnut Seed is reported down at 0.075 lakh hectares against 0.100 lakh hectares a year ago and Sunflower sowing is reported steady at 1.0 lh in the corresponding period last year.
Technical Analysis
Prices closed below its 10 Day & above its 20 Day EMA, which indicates mixed market sentiments.
14-Day RSI is at 49.83, which is in neutral zone.
Outlook
Mustard seed prices are expected to trade lower on account of progress of monsoon (for short term). In the long term, 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 a bigger political picture to help you invest
NCDEX GURMUZZAFFARNAGARJUL12 20 July 2012
contract was trading at
Rs 0 . What's your view on it?
