Agri Weekly Report: Motilal Oswal

As seen on Daily chart, NCDEX RSO gave a rally towards our recommended target and made a high of Rs.889 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.835 whereas recent high Rs.889 will act as strong resistance. Price break above resistance will lead the rally towards Rs.900.

RM Seed

NCDEX RM Seed has been trading in uptrend price channel which indicates that the short-term trend is likely to remain positive. On the lower side Rs.5000 remains very strong support for the commodity while Rs.5500 remains good resistance 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.5350 – 5500 levels.

Chana Seed

NCDEX Chana has broken its resistance level (from consolidation zone) which indicates strength in the prices of the commodity. Going ahead Rs.4200 is likely to act as strong support for the commodity and strength in the counter is likely to continue as long as it is trading above the support level. On the higher side the commodity is likely to test the resistance level of Rs.4600. Buying on dips is thus recommended.

CPO

MCX CPO has been taking support of upward sloping trend line which indicates that the short-term trend is likely to remain positive. Thus, bias remains bullish in the counter as long as it is trading above the support of Rs.738 level. On the higher side Rs.770 remains strong resistance level for the counter and if the commodity manages to give daily close above Rs.770 level then it is likely to test Rs.790 level. Also 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.770 – 790 levels.

Turmeric

NCDEX Turmeric has been consolidating in the range of Rs.5900 and Rs.5500 range from the past few days and breakout from the consolidation zone is likely to establish the trend in the counter. Going ahead Rs.5500 remains strong support while resistance is placed at Rs.5900 level and then at Rs.6100 level. If the commodity manages to give daily close above Rs.5900 level then it may gain further bullish momentum and is likely to test higher resistance of Rs.6200 level. However, a break below Rs.5500 level is likely to result in the counter gaining bearish momentum and may give downfall till Rs.5200 level.

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agri Weekly-25.007.2020