Buy NCDEX Wheat Dec '12 around Rs 1583; SL Rs 1567: Emkay

Fundamental Snapshot

Mixed bias witnessed in domestic wheat markets in today’s trading session. Dara and Chakki wheat variety prices were decreased during today’s trading session by Rs.25 and Rs.20 at Rs 1600 or Rs 1610 per quintal, at the same time wheat prices were eased by Rs.20 at Delhi market. Shahjahanpur mandi wheat price was decreased by Rs.10 at Rs 1411 per quintal. Kota wheat prices (best quality) have increased by Rs.25 to Rs.1625. wheat was traded at 1525-1550 per quintal at Indore market.

Wheat exports from India have crossed three million tons, bulk of which is from the private trade. The Government agencies have contracted about one million tonnes for exports and have actually shipped about five lakh tonnes so far.

Technical Outlook

NCDEX Wheat Dec '12,futures prices corrected significantly to close at Rs 1580 levels. Resistance is at Rs 1584 level, violation of this level then price could extend to Rs 1588 levels. Support is at Rs 1573 level breach of this level, then the price could correct to Rs 1566 levels. Volumes declined from previous days of 7980 to 4590 MT ,Open interest depleted from 23280 to 22990.

In Itarsi stocks are at 10 MT, decreased by 88 MT.
Spread between Wheat Dec '12, and Wheat Jan '12, contracts is 5 rupees.
Continue with long position.

Commodity: Wheat Dec’12
Strategy: Bought
Entry: 1583
Target-1: 1604
Target-2: 1614
Stop Loss: 1567

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