Support for Rubber around Rs 19350-19250: Geojit

Geojit Comtrade has come out with its report on Rubber. According to the research firm it has Support at Rs 19350-19250 and Resistance at Rs 19540-19660.

• RSS4 grade rubber in NMCE inched up on Thursday after remaining mostly steady during the previous two sessions while in the spot market prices continued to remain steady.

• According to sources, tapping has slowed down in the major rubber growing areas in Kerala as 'wintering' season has started. Slow down in tapping coupled with thinning difference between the quotes prevailing in the local and international markets may provide firm support, though subdued demand from the major natural rubber consuming industries may limit gains keeping the market in a tight range. With almost little difference existing between quotes in the international market and local market, imports may become less attractive and probably will result in the increase in demand for the local produce. Moreover, it may improve the prospects of exports, though an appreciating rupee may dampen export demand. With market trading in tight ranges for quiet long time, wide swings look increasingly possible in the near future.

• On Friday, natural rubber in the international market declined with Tocom rubber futures declining for the second consecutive day today probably weighed down by Chinese trade balance data which showed lower imports of natural rubber by the country during January. Also, car sales in China, top natural rubber consumer, fell in January by 23.8 per cent on YoY basis.

RUBBER nmce Mar:
With support being held at 19250, attempts to test 19660 may be seen but it requires sustaining above the same for any further upsides towards 19900-20000. Inability to do so may witness a turn lower towards 19350-192500 followed by 18950.

Resistance	Turnaround Level	Support
19540-19660	19660-19250	19350-19250
19790-19940		19120-18950
20070-20240-20400		18650-18500-18400

 

 

 

 

 

 

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