Turmeric prices are inching up slowly and steadily since September. The Turmeric futures contract traded on the NCDEX is on an uptrend ever since it recorded a low of ₹5,700 a quintal on September 19. The contract has surged 14 per cent since then and is currently trading at ₹6,520.

Strong domestic demand from northern India and also increased export demand has supported the price rise.

At the same time, supplies were also reported to be less – this has also helped pushed prices higher.

The uptrend in the NCDEX-turmeric futures contract is expected to remain intact. Further rise is on the cards giving an opportunity for traders to enter long positions.

Short-term view: The short-term outlook for the contract is bullish. The contract has decisively breached its 200-day moving average resistance at ₹6,455 on Tuesday. This level will now act as a good resistance-turned-support for the contract. Key short-term support is at ₹6,400. As long as the contract trades above this level, the short-term uptrend will remain intact. A rise to ₹6,700 looks likely over the short term.

Traders with a short-term perspective can go long. Stop-loss can be placed at ₹6,380 for the target of ₹6,680.

The short-term outlook will turn bearish if the contract declines below ₹6,400. The next targets then will be ₹6,300 and ₹6250.

Medium-term view: The medium-term outlook is also bullish. The strong down trend that was in place since February has been broken. Key resistance is at ₹6,700. A strong break above this level can take the contract higher to ₹7,100 in the medium-term.

Key medium-term support is at ₹6,200. The outlook will turn bearish on a strong fall below this level. The ensuing target on such a fall will be ₹6,000.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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