NCDEX Jeera under fresh selling; Support seen at 13550

Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 10.8% to settled at 6927 while prices down 155 rupees.

Now NCDEX Jeera is getting support at 13550 and below same could see a test of 13485 levels, and resistance is now likely to be seen at 13730, a move above could see prices testing 13845.

Jeera yesterday settled down by 1.13% at 13615 as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments.

The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl.

Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. As India struggles against curbing the Corona pandemic, exports markets have turned subdued.

The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily.

The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year.

Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by 50 Rupees to end at 13800 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 13485-13845.
–Jeera prices dropped as lockdown restrictions increased against rising Covid cases.
–As India struggles against curbing the Corona pandemic, exports markets have turned subdued.
–The importers prefer to wait for the situation to normalize before negotiating for fresh deals.
–In Unjha, a key spot market in Gujarat, jeera edged down by 50 Rupees to end at 13800 Rupees per 100 kg