NCDEX Jeera under short covering; Resistance seen at 14190
Commodity Online | October 23 2020
UPDATED 11:50:21 IST

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Technically Jeera market is under short covering as market has witnessed drop in open interest by 1.58% to settled at 2241 while prices up 80 rupees.

Now NCDEX Jeera is getting support at 14090 and below same could see a test of 14035 levels, and resistance is now likely to be seen at 14190, a move above could see prices testing 14235.

Jeera yesterday settled up by 0.57% at 14140 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 14035-14235.
--Jeera gained 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 up by 4.55 Rupees to end at 13782.35 Rupees per 100 kg.

Courtesy: Kedia Commodities

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