The Hindu Business Line : Turmeric likely to see selling pressure

Turmeric futures are likely to witness selling pressure following a fall in spot prices. There are chances of turmeric contracts falling below Rs 2,000 a quintal, according to analysts .According to Share Khan Commodities, turmeric has been trading below the crucial level of Rs 2,112 since last week. Though a minor upward correction is possible, it should be treated as a selling opportunity.

The firm, which pegs the trend reversal at Rs 2,137, sees supports at Rs 2,025 and Rs 2,000, while resistances are likely at Rs 2,077 and Rs 2,091. “The daily chart shows a bearish crossover, which suggests that the medium term for the commodity is down,” the company said in an advisory.

Lacklustre demand

Kotak Commodities Services Ltd said lacklustre demand in the physical market was supporting the bearish sentiment in the futures counter. “Decrease in prices and declining open interest at the end of the last week were indications of long liquidation. Volumes chart suggest that the momentum favours selling.” .

It said the first support for the August contract would be Rs 2,141 and if that is broken, then the prices could be supported in the Rs 2,128-Rs 2,069 range. On Wednesday, August contract was quoted at Rs 2,158 on NCDEX and Rs 2,187 on MCX. In the spot market at Hyderabad, turmeric is quoted between Rs 2,100 and Rs 2,200 a quintal.