Jeera futures weak, to gain on domestic demand

Indian jeera futures traded weak on Thursday on profit-taking after prices rose more than 7 % in the last eight sessions. However, the Indian spice recovered from the low point of the day and closed marginally down at 13507 rupees, down just 0.38%.

According to trade sources, there are reports of likely strengthening of export demand in coming days as export enquiries are coming from Middle East countries, Europe, Singapore and the neighboring country Bangladesh.

Steady gain in domestic demand is also a supportive factor for the prices. Sowing for this spice is still in progress and the prevailing weather is conducive for crop growth.

For NCDEX December contract volume and open interest has gone up by 58.6% and 1.62% respectively on Wednesday, which indicate the continuity of uptrend.

Trading Recommendations

NCDEX Jeera Nov Buy with a stop loss of 13105 for a target of 13710.

Courtesy: AUM Capital Market Pvt. Ltd.

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