Crude palm oil futures fell to Rs 1,198 per 10 kg on April 26 as participants trimmed their positions, as per open interest data. Malaysian palm oil futures slipped 0.84 percent to settle at 3,894 Ringgits on Bursa Malaysia Bhd.
Crude palm oil traded in the negative territory after a gap-down opening in the evening session.
The agri commodity has been trading higher than 50, 100 and 200-days’ moving averages but lower than 5 and 20 days’ moving averages on a daily chart for the May series. The momentum indicator Relative Strength Index (RSI) is at 49.34 which indicates neutral movement in the prices.
Navneet Damani, Vice President, Motilal Oswal said, “MCX CPO has been making higher peaks and higher troughs on daily charts which indicates strength in the price of the commodity. Going ahead, Rs 1,090 remains strong support and bias remains bullish as long as it is trading above the support zone. An intermediate support is placed in the range of Rs 1,130-Rs 1,135 levels.”
The RSI has been sustaining well above the mid-point of 50 level which indicates strength in the prices of the commodity. Thus, buying on the dip is recommended, Damani said.
In the futures market, Crude Palm Oil (CPO) for April delivery touched an intraday high of Rs 1,212 and an intraday low of Rs 1,196.10 per 10 kg on MCX. So far in the current series, CPO has touched a low of Rs 883.10 and a high of Rs 1,231.
CPO delivery for April slipped Rs 8.70, or 0.72 percent at Rs 1,198 per 10 kg at 19:58 hours IST with a business turnover of 1,866 lots.
CPO delivery for May dropped Rs 9.20, or 0.80 percent at Rs 1,141.90 per 10 kg with a business volume of 5,880 lots.
The value of April and May's contracts traded so far is Rs 153.94 crore and Rs 350.68 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX CPO has been trading with negative bias and prices declined more than 40 points from the resistance zone of Rs 1,182- Rs 1,190 in the previous session. We may expect bears to dominate and support of Rs 1,130- Rs 1,120 levels could be tested."
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