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.

comment COMMENT NOW