Resistance seen at 8360 for NCDEX Turmeric

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Turmeric on NCDEX settled down by -0.41% at 8288 on profit booking after gaining on account of expectation of pickup in demand from north India. Moreover, lower arrivals from the producing belts also added support to turmeric prices uptrend. The arrivals in the main physical markets such as Nizamabad, Duggirala (AP), Salem, Erode and Sangli reported decreasing compared to last week. Turmeric acreage in Telangana as on 20-Jul-16 was around 30,000 hectares as compared to 31,000 hectares last year.

The acreage is lower compared to normal. As per dept of commerce data, turmeric exports in April 2016 increased by 27% compared to last year at 9,135 tonnes. In 2015-16, 85,426 tonnes exported compared to 90,738 tonnes in 2014-15. Spot turmeric prices increased by Rs. 200 a quintal at Erode markets as some traders received orders from North India. Further, some quality turmeric arrived for sale.

The traders procured good number of bags for their orders and also decided to stock the same, as they expect more demand within a couple of days. Around 4,200 bags arrived, including 400 bags of local good quality hybrid turmeric. Few bags of Salem Hybrid turmeric arrived and sold. 75 per cent of the stocks were sold. The finger variety gained Rs. 200-235 a quintal; the root variety Rs. 175.

At the Erode Turmeric Merchants Association, the finger turmeric was sold at Rs. 7,544-9,521 a quintal and the root variety Rs. 7,409-8,688. Of the arrival of 1,167 bags, 680 were sold. In Nizamabad, a major spot market in AP, the price ended at 8475 rupees gained 38.5 rupees. Technically now Turmeric is getting support at 8236 and below same could see a test of 8182 level, and resistance is now likely to be seen at 8360, a move above could see prices testing 8430.

Trading Ideas:
–Turmeric trading range for the day is 8182-8430.
–Turmeric dropped on profit booking after gaining on account of expectation of pickup in demand from north India.
–Turmeric acreage in Telangana as on 20-Jul-16 was around 30,000 hectares as compared to 31,000 hectares last year.
–NCDEX accredited warehouses turmeric stocks gained by 170 tonnes to 5760 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 8475 rupees gained 38.5 rupees.

Courtesy: Kedia Commodities

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