The soyabean prices continue to hover at higher levels. Though the prices of the oilseed began to fall from late January this year, the correction was short-lived and it ended in the first week of February.
The Soyabean futures contract on the National Commodity and Derivatives Exchange (NCDEX) made a high of ₹3,849 per quintal on January 30.
After tumbling about 11 per cent in just one week, the fall, however, halted at a low of ₹3,416 on February 6. The contract has reversed higher again from there recovering all the loss and is currently trading at ₹3,856/quintal.
Outlook
The support in the ₹3,450-3,430 zone has held well. The contract has reversed higher after making a low of ₹3,416 last month. This keeps the overall uptrend that has been in place since November intact.
Immediate resistance is at ₹3,900. Inability to break this hurdle can trigger an intermediate pull-back move towards ₹3,700 or even ₹3,600 in the near-term. But further fall below ₹3,600 looks less likely at the moment.
As such the contract can remain range-bound between ₹3,600 and ₹3,900 for some time.
An eventual break above ₹3,900 will boost the bullish momentum. Such a break will see the contract rallying towards ₹4,100 or ₹4,200 in the coming weeks.
Traders can make use of declines to go long ₹3,730 and also accumulate at ₹3,670.
Keep the stop-loss at ₹3,530 for the target of ₹4,100.
Revise the stop-loss higher to ₹3,835 as soon as the contract moves up to ₹3,920.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.