Motilal Oswal's report on Agri Weekly
As recommended, NCDEX Soya bean achieved our recommended target of Rs.3700 and is currently trading close to the same area.Both the momentum indicators 14- period RSI & MACD are flat and is not indicating any trend direction. Immediate support is placed at Rs.3680 whereas resistance is at Rs.3765. Going ahead price sustained break below support will confirm weakness towards Rs.3580 – 3530 levels whereas break above resistance will lead the rally towards Rs.3905.
As recommended, NCDEX RSOachieved our recommended targets in the preceding week and reversed exactly from the same area currently trading at Rs.873. The 14- period RSI has reversed from its oversold zone and MACD above the zero line is also indicating strength in price. Now Rs.843 will act as strong short-term support whereas resistance is at Rs.885 – 895 area. Short-term bias remains positive and dip buying is advised as long as price holds above support.
NCDEX RM broke the rising channel formation and achieved our recommended target of Rs.4965. the 14-period RSI has reversed above the mid-level of 50 and MACD is about to give a crossover which indicated strength in price. Short-term support is placed at Rs.4965 – 4050 zone and bias remains positive above the same targeting Rs.5220 – 5265 levels. Dip buying is recommended.
NCDEX Chana achieved our recommended target continued to trade in a higher highs and higher lows formation which indicated further strength in price for the counter.Currently the counter is facing stiff resistance at Rs.4350 and upside will extend only if price break and sustains above the same. Short-term supports are placed at Rs.4235 – 4200 levels of Fibonacci extension. The 14-period RSI sustained trade around 70 is indicating strength in price. Going ahead buying on dip is advised, but our bias will negate below support.
Guarseed broke below the rising channel and achieved our initial target of Rs.3970 and reversed from the same. Now, 3960 – 3900 will act as strong support whereas resistance is at Rs.4130 – 4195. The 14-period RSI is close to the mid-level of 50 and MACD is about to give a crossover which indicates strength in price. Buying is advised but our bias will negate below support.
Guargumtraded with negative bias in the preceding week forming lower highs and lower lows formation. Recently the counter has reversed from its key supports of Rs.6090 and is indicating short-term trend reversal. The 14-period RSI is also indicating a reversal from its oversold zone and MACD is also confirming the same. Sideways-to-positive move will be seen as long as price holds above support. Resistance is capped at Rs.6390 – 6600.
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