Resistance seen at 7281 for NCDEX Turmeric

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Turmeric on NCDEX settled up 0.58% at 7242 due to good demand from the upcountry buyers. However upside seen limited on expectation of medium and poor quality supplies from major growing regions. It is expected that the demand from the industrial buyers will support the prices just before new season harvesting.

On the export front, country exported about 51,147 tonnes of turmeric during April-August period up by 32% compared last year, as per department of commerce data. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure on turmeric prices at higher levels. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. At Salem market estimated market supply was at 1 quintals, steady as against previous day’s arrival.

At Nizamabad market estimated market supply was at 1000 quintals, down by 500 quintals as against previous day. At Erode market total arrivals are at 2000 quintals, higher by 1000 quintals as compared to previous day. Spot turmeric prices edged up at Erode markets as buyers were keen on fulfilling their local orders though they did not get any upcountry orders.

On Thursday, 2,000 bags arrived for sale and the buyers were keen in buying medium variety turmeric. 65 per cent of the arrived turmeric was sold. Technically market is under fresh buying as market has witnessed gain in open interest by 9.36% to settled at 11100 while prices up 42 rupee, now Turmeric is getting support at 7181 and below same could see a test of 7121 level, and resistance is now likely to be seen at 7281, a move above could see prices testing 7321.

Trading Ideas:
–Turmeric trading range for the day is 7120-7320.
–Turmeric prices ended with gains due to good demand from the upcountry buyers.
–However upside seen limited on expectation of medium and poor quality supplies from major growing regions.
–NCDEX accredited warehouses turmeric stocks dropped by 10 tonnes to 2947 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7583.75 rupees gained 25.45 rupees.

Courtesy: Kedia Commodities

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