Jeera under short covering; Resistance seen at 16150

Jeera market is under short covering as market has witnessed drop in open interest by 17.26% to settled at 1941 while prices up 295 rupees.

Now NCDEX Jeera is getting support at 15775 and below same could see a test of 15540 level, And resistance is now likely to be seen at 16150, a move above could see prices testing 16290.

Jeera on NCDEX settled up by 1.88% at 16010 due to improving demand from the bulk buyers for new season crop. However, upside seen limited amid higher availability in the physical market and expectation of improved crop prospects.

Demand for good quality new crop is gradually picking up. The fall in output in Syria and Turkey on account of loss of quality due to weather adversities will possibly make India the sole supplier in the international market. India’s cumin seed (jeera) output is set to touch 4,16,000 tons for 2019, about 9% higher than the previous year, supported by a sharp jump in production in Rajasthan.

India’s cumin seed (jeera) output is set to touch 4,16,000 tonnes for 2019, about 9% higher than the previous year, supported by a sharp jump in production in Rajasthan. During the second half of March, 23,800 tonnes of jeera arrived in physical market across the country compared to 18,500 last year.

However, new season jeera have low moisture and fetching fairly higher prices as demand is good from the exporters and bulk buyers. Exports of jeera is up 20.8% on year in January at 9,429 tonnes compared to 7,800 tn last year while for Apr-Jan period exports are up 24.75% at 1.46 lt, compared to last year, according to DGCIS. In Unjha, a key spot market in Gujarat, jeera edged up by 250.4 Rupees to end at 16106.65 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 15540-16290.
–Jeera prices gained due to improving demand from the bulk buyers for new season crop.
–However, upside seen limited amid higher availability in the physical market and expectation of improved crop prospects.
–The fall in output in Syria and Turkey on account of loss of quality due to weather adversities will possibly make India the sole supplier.
–In Unjha, a key spot market in Gujarat, jeera edged up by 250.4 Rupees to end at 16106.65 Rupees per 100 kg.

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