NCDEX Jeera under long liquidation; Resistance seen at 14010
Commodity Online | October 22 2020
UPDATED 11:50:27 IST

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Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 2.94% to settled at 2277 while prices down 55 rupees.

Now Jeera is getting support at 14010 and below same could see a test of 13955 levels, and resistance is now likely to be seen at 14155, a move above could see prices testing 14245.

Jeera yesterday settled down by 0.39% at 14060 as late profit booking seen after gains seen as there is a possibility of damage to crops due to the unseasonal rain.

Prices rose due to festive demand as well as purchase for export from abroad. India has seen a decline in the number of Covid-19 cases this week, which will boost demand for all food items in hotels and restaurants.

Prices are getting support after some export enquiries traders are facing quality issue as there is limited availability of EU pesticide compliant jeera in market. Rain activities will gradually increase in the central and northern regions of Gujarat.

Between 16 and 19 October, light to moderate and heavy rains are likely in many districts of Gujarat. However, there is no possibility of continuous torrential rain. In these parts, this rain can be called unseasonal rain as the monsoon usually returns by October 10 from most parts of Central India.

There has been no progress in the withdrawal of monsoon since 6 October. The Jeera crop output is said to be good and as per market estimates, it is expected to increase by 10% to 4.4 lakh tonnes in MY 2020-21 (Apr-Mar).

Trading Ideas:
--Jeera trading range for the day is 13955-14245.
--Jeera dropped as late profit booking seen after gains seen as there is a possibility of damage to crops due to the unseasonal rain
--Prices are getting support after some export enquiries traders are facing quality issue as there is limited availability of EU pesticide compliant jeera
--The Jeera crop output is said to be good and as per market estimates, it is expected to increase by 10% to 4.4 lakh tonnes
--In Unjha, a key spot market in Gujarat, jeera edged down by -50 Rupees to end at 13950 Rupees per 100 kg.

Courtesy: Kedia Commodities

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