Cardamom futures prices are expected to continue the positive trend on strong domestic and export demand.
However, during the day prices might take small corrections on profit booking, which might create further buying at lower levels Arrivals season is coming to an end, therefore fall in arrivals are likely to support the prices in near term.
Total daily arrivals at spot auction held in Kerala were reported around 32,367 Kg. against 90,463 Kg.
Total arrivals at spot auction till January 22nd were reported around 10,410 tonnes 6,910 tonnes arrived during same period last year.
In current arrival season, despite of increased demand higher supply outweighed demand; but now as arrival.
season is coming to an end, supply-demand is becoming balanced supporting cardamom prices to trade up.
According to derivative analysis, prices and volumes have increased while open interest has declined. It is a good indication that market has a lot of traders initiating from both sides but larger traders are liquidating into the higher prices.
The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day.
Cardamom MCX Feb-12support: 667 676 resistance: 696 705 Buy at 685 TP 708 SL 667
Courtesy:Karvy Comtrade Ltd.
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