MCX Nickel under fresh buying; Resistance seen at 923.2
MCX Aluminium likely to move in a range of 148.1-155.7
MCX Menthol Oil under long liquidation; Support seen at 1660.6
Natural Gas market under fresh buying; Support seen at 222.2
MCX Cotton market under short covering
Technically Cardamom market is under fresh selling as market has witnessed gain in open interest by 37.7% to settled at 84 while prices down 32.6 rupees.
Now MCX Cardamom is getting support at 1365.7 and below same could see a test of 1353.4 level, And resistance is now likely to be seen at 1397.7, a move above could see prices testing 1417.4.
Cardamom on MCX settled down by 2.31% at 1378.1 on profit booking after prices gained because of heavy loses to crop due to recent floods and good export hopes after the steep fall in rupee.
Though there is a concern about demand from UAE due to strict pesticide rule, demand from other countries is likely to be robust because of fall in rupee. Export of cardamom from the country during 2017-18 spurted 48% to 5,680 ton from 3,850 ton a year ago.
Volume wise exports recorded a growth of 45% at Rs 6.09 billion though average per unit prices were down, data from Spices Board showed. Arrivals of the new crop of cardamom have started at the auction centres in Bodinayakanur in Tamil Nadu and Vandanmedu in Kerala. Around 25 tn of new arrivals are coming at auctions daily, which is 25-30% of the total arrivals.
Heavy showers for a prolonged period have led to fungal diseases in plantations. As of Monday, plantations spread over 1,337.60 ha in Kerala’s Idukki district had been damaged, according to the state’s farm department. Despite record higher exports in 2017-18, exports figure in 2018-19 may not touch that volume as there are issues regarding pesticide to the stocks exported to Saudi Arabia.
Trading Ideas:
–Cardamom trading range for the day is 1353.4-1417.4.
–Cardamom dropped on profit booking after prices gained because of heavy loses to crop due to recent floods and good export hopes.
–Despite last year’s record exports, exports in the current year are likely to be affected due to strict measures by Saudi Arabia due to pesticide issue.
–Around 25 tn of new arrivals are coming at auctions daily, which is 25-30% of the total arrivals.
–Cardamom prices in spot market dropped by 14.40 rupees and settled at 1345.60 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
