Sell NCDEX Jeera May at Rs 13150; target Rs 12800: Emkay.

Emkay Commodity Research has come out with its report on agri commodities. According to the research firm, one can sell NCDEX Jeera May contract at Rs 13150 for the target of Rs 12800 with a stop loss of Rs 13400.

Jeera future prices traded downside on profit booking at higher levels however, it is expected to gain support from good domestic and export demand.

India exported about 524,690 tonnes of spices in April-December, estimates by the Ministry of Commerce showed. Exports of Jeera in between Apr’12- Jan’13 stood at 64,400 tonnes, an increase of up 86%. Jeera old stocks were reported at around 8-9 lakh bags all over India. Production expected 40- 45 lakh bags during the current period.

Jeera is looking to trade in range with weak bias amid good ongoing arrivals but downside may be limited on back up of good domestic and export demand.

Technical:

NCDEX Jeera May contract is holding below middle level of the Bollinger band indicating bearishness.

For intraday sell on rallies should be the strategy

Contract - May
Strategy - Sell
Entry - 13150
Target - 12800
Stop loss - 13400

Pepper future prices ended steady amid continued selling pressure in spot market of Karnataka and uncertainty related to launch of new Pepper contracts.

Spot prices also dropped in tandem with the trend in the futures market, despite good buying on the spot market. Vietnam, the largest producer and exporter is likely to produce good crops thus increasing the global supply. India’s Apr-Jan export data is 11,550 Tons lower by 48%.

Pepper is likely to trade with weak bias on good arrivals in spot market and bearish sentiments in the futures market amid good crop output hopes and uncertainty in launch of new Pepper contracts.

Technical:

NCDEX Pepper May contract has been respecting strong resistance levels of 35800 levels, till price manages to trade below these levels our bias remains negative.

For intraday the outlook is mixed with negative bias.


Source : moneycontrol.com