Turmeric April futures expected to trade slightly positive on extended short covering. According to trade sources, exporters are buying good amount of fresh crop which might support the prices.
However, farmers might increase supply at spot market to 10,000 bags from next week which might weigh on prices in near term. By mid Feb, around 65 lakh bags (10 lakh carry forwards & 45 lakh bags new crop) are expected to arrive in Erode.
Arrivals as Erode market reported around 7000 bags with 5000 bags of fresh crop. According to derivative analysis, open interest has declined while prices and volumes have increased.
It is a good indication that Market has a lot of traders initiating from both sides but larger traders may be 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.
Turmeric NCDEX Apr-12 support: 4568 4596 resistance: 4648 4666 Buy at 4610 TP 4690 SL 4550
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