Agri Weekly Report: Motilal Oswal
According to Motilal Oswal, NCDEX Soya bean has been trading in consolidation zone at the moment and a break below Rs.3740 level is likely to result in the continuation of previous trend (Bearish).
July 31, 2020 / 01:24 PM IST
Motilal Oswal's report on Agri Weekly
NCDEX Soya bean has been trading in consolidation zone at the moment and a break below Rs.3740 level is likely to result in the continuation of previous trend (Bearish). On the higher side resistance is placed at Rs.3840 level while strong support is placed at Rs.3740 level. Thus, a break below Rs.3740 is likely to result in the commodity moving further lower towards Rs.3650 – 3600 levels. Till breakdown takes place, Consolidation is likely to continue in the commodity.
As seen on 240-min chart, NCDEX RSOgave a rally towards our recommended target and made a high of Rs.862.70 level in the previous week.Going ahead, initial profit booking could be seen but major bias remains positive and dip buying is still recommended. Strong support is placed at Rs.840 whereas recent high Rs.862.70 will act as strong resistance. Price break above resistance will lead the rally towards Rs.872.
RM Seed failed to break below the support level of Rs.4730 and reversed around the same levels. It has also broken the resistance level of Rs.4800.Thus Rs.4730 remains critical support level for the commodity. The 14-period RSI sustaining above the mid-level of 50 is indicating strength in price of the commodity. Buying is recommended as long as price holds above support level targeting Rs.4920 – 4970 levels.
NCDEX Chana has broken its support level (from rising price channel) which indicates weakness in the prices of the commodity. Going ahead Rs.4150 is likely to act as strong resistance for the commodity and weakness in the counter is likely to continue as long as it is trading below the resistance level. On the lower side the commodity is likely to test the support level of Rs.4020. Sell on rallies is thus recommended.
MCX Cotton traded has taken the support of lower trendline at Rs.15780 level. Overall bias remains bearish in the counter and the break of support zone of Rs.15780 is likely to result in the continuation of bearish trend in MCX Cotton. On the higher side Rs.16770 remains strong resistance level for the counter. Also 14-period RSI is sustaining well below 50 mark which indicates weakness in the prices of the commodity. Thus, selling on rallies is recommended targeting lower support at Rs.15000 – 14500 mark.
NCDEX Turmeric has broken out of the resistance zone which indicates the strength in the prices of the commodity. Going ahead Rs.5600 remains strong support while immediate support is placed at Rs.5800 level. The 14-period RSI is sustaining well above 50 mark which indicates strength in the prices of the commodity. Thus buying on dips is recommended targeting higher resistance at Rs.6000 – 6150 mark.
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