Cardamom futures are expected to open on lower note on extended corrections. However, overall trend is positive amid good demand from exporters and up country buyers.
According to trade sources, arrivals are expected to decline in coming days as end of the harvesting season is approaching. Total arrivals at spot auction held in Kerala were reported around 1,21,567 Kg. on Tuesday.
Total arrivals at spot auction till January 22nd were reported around 10,410 tonnes 6,910 tonnes arrived during same period last year. According to derivative analysis, prices, volumes and open interest have declined.
It is a good indication that the price decline is being caused by disgruntled long position holders being forced to liquidate their positions.
Technicians view this scenario as a strong position technically because the downtrend will end as all the sellers have sold their positions, creating fresh buying opportunity at lower levels.
Cardamom MCX Feb-12 support: 651 657 resistance: 676 686 Sell at 670 TP 640 SL 692
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