Commodities

Outlook is bullish for NCDEX Coriander

Yoganand D | Updated on December 04, 2018 Published on December 04, 2018

Coriander seeds   -  File photo

The NCDEX Coriander (Symbol: DHANIYA) futures contract has gained almost 3 per cent and trades at around ₹6,781 per quintal on Tuesday. The medium as well as short-term trends are up for the contract.

In mid-October, the contract emphatically breached a key resistance at ₹5,000 and its 200-day moving average and continued to trend upwards. Since October, the contract has been on short-term uptrend. It hovers well above its 50- and 200-day moving averages. After encountering a key resistance at ₹6,500 in late November, the contract witnessed a corrective decline. But it found support at ₹6,085 and resumed the uptrend. Tuesday’s rally has decisively breached the key barrier at ₹6,500 and strengthened the short-term uptrend. Both the daily and weekly relative strength indices feature in the bullish zone. Continuing the upswing, the contract can test next resistance at ₹7,000 in the coming trading sessions.

A conclusive break above this level will reinforce the bullish momentum and take the contract higher to ₹7,250 and then to ₹7,500 in the short to medium term horizon. Traders with a short-term perspective can buy the contract with a stop-loss at ₹6,400. On the other hand, the contract has key support at ₹6,500 which can provide cushion on a corrective decline. A decisive fall below this level can drag the contract down to ₹6,300 and then to the ₹6,000-₹6100 band in the short term.

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

Published on December 04, 2018
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