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Published on 10/07/2020 5:34:37 PM | Source: Choice Broking Pvt Ltd

NCDEX Coriander Future price has traded higher during the month of June - Choice Broking

Posted in Commodities Reports| #Commodity Tips #Choice Broking

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Coriander

NCDEX Coriander Future price has traded higher during the month of June and July month so far owing to easing lockdown situation in the major states of Madhya Pradesh, Gujarat and Rajasthan in the rural and semi urban regions. This has led to increased buying activities in the domestic markets eventually leading to support in the spot and the future prices. But then, prices has currently sustaining on the levels of Rs.6100-6300 levels amid higher stocks from last year and expectancy of higher production for the year 2019-20. By 9th July, NCDEX Coriander Future price closed at Rs.6234/quintal, higher by 10.85% compared Rs.5624/quintal reported on 29th May.

Fundamentally for the coming month, we are expecting NCDEX Coriander futures to witness uptrend as traders continue with their active buying around Rs.60-62/kg levels in the major mandis of Kota & Ramganj (Rajasthan), Rajkot (Gujarat) and Guna & Neemuch (Madhya Pradesh). Current year masala millers buying so far has been 70-75% of their total capacity and could increase in the coming weeks as traders are forecasting lower stocks for the crop year 2019-20 compared to previous year 2018-19; before the beginning of the sowing season in October month onwards. However, the export demand from India in the current period is still lagging behind amid rising worries of longer duration of covid-19 pandemic. India also imports coriander seeds from Russia and Bulgaria during the June-August period due to higher medicinal value in the coriander seeds from the said countries compared with the native. This could cap extreme bullishness in NCDEX Coriander prices in the month ahead. In consideration with the above factors, we are bullish on NCDEX Coriander futures for the month ahead.

On the daily chart, NCDEX Dhaniya (Aug) has witnessed support near its “Upward Sloping Trend Line” which suggests control in the hands of the bulls. Also, price has taken support near the 200 SMA which indicates strength in the counter. Additionally, the price has sustained above the “Ichimoku Cloud” which confirms bullish influence. Furthermore, “Super Trend (7,1)” is in a buy signal which confirms bullishness in the counter. Moreover, momentum indicator RSI (14) has sustained above its 50 level which indicates positive momentum. So, based on the above technical structure one can initiate a long position in NCDEX Dhaniya (Aug) future at CMP 6210 or a fall in the prices till 6140 levels can be used as a buying opportunity for the upside target of 6610. However, the bullish view will be negated if NCDEX Dhaniya (Aug) closes below the support of 5990.

 

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