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CORIANDER SEED

NCDEX Coriander Future price has traded bullish during the month of January month and February month 50 far owing to higher buying of coriander seed at lower prices of Rs.5800-5900 levels. Moreover, higher demand for Coriander seed in the pharmacy sector has driven in the prices. Though the sowing acreage of Coriander seed had nearly doubled in the state of Gujarat, which happens to be the third largest producer in India, however, sowing acreage in the state of Madhya Pradesh and Rajasthan for 2020-21 has been reported to be lower by 10-12% compared to the previous year. By 7th January, NCDEX Coriander Future price closed at Rs,5732/quintal, lower by 10.52% compared Rs.6406/quintal reported on 1st December. / ‘ =, Choice Fundamentally for the month ahead, we are expecting NCDEX Coriander futures to witness uptrend as the export demand from India is expected to remain higher and the peak season for exports of coriander seeds is likely to be witnessed during the month of March. Moreover, the current supplies in the domestic market is relatively lower due to lower stocks from farmers during the last year which is estimated to support spot and future prices as well. Since, India had been in the peak lockdown phase during the AprilJune period of 2020, imports of premium coriander seeds from Russia and Bulgaria has been reported to be lower compared with the preceding years. Since the European countries are still in the lockdown phase, the import supply chain is likely to remain disrupted until the easing of the same. Harvesting of new crops in Gujarat has already begun, while Madhya Pradesh and Rajasthan is expected to begin harvesting from March month onwards. This could bring some corrections in prices from higher levels in the month ahead, but then, we continue with the bullish trend in NCDEX Coriander Futures.

On the daily chart, NCDEX Dhaniya (Apr) has witnessed support near its 200 Days “Simple Moving Average” which suggests control in the hands of the bulls. Also, price has sustained above its “Parabolic SAR” which indicates strength in the counter. Additionally, the price has given a breakout of its “Ichimoku Cloud" which confirms bullish influence. Also, Super Trend (7,1) indicator is in a buy signal which signals 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 (Apr) future at CMP 6430 or a fall in the prices till 6350 levels can be used as a buying opportunity for the upside target of 7200. However, the bullish view will be negated if SY NCDEX Dhaniya (Apr) closes below the support of 6000.

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