Commodity Calls

Initiate fresh long in NCDEX mustard seed

Akhil Nallamuthu BL Research Bureau | Updated on July 29, 2021

Stop-loss: ₹7,450; Target: ₹7,990


The continuous futures contract of mustard seed (RM seed) on the National Commodity and Derivatives Exchange (NCDEX) has been charting a sideways trend since November last year. That is, it was largely trading within the broad range of ₹5,350 and ₹6,400.


But in early March, the contract set an uptrend from the range bottom which had enough momentum to lift the contract above the upper limit of the range i.e., ₹6,400. The upward movement continued and the contract reached ₹7,700 levels, where it lost traction. By mid-June, the contract retested the price level of ₹6,400. This time, it acted as a support against which another rally was established.

The futures began rallying again towards the end of June and on Monday, it rallied past the prior high of ₹7,710 and on Tuesday, it registered a fresh high of ₹7,790. However, it moderated from those levels and the contract is currently hovering around ₹7,650 levels.

The trend can be inclined towards upside as long as the price is above ₹7,500 and corroborating the positive outlook, the relative strength index (RSI) and the moving average convergence divergence (MACD) indicator on the daily chart is showing bullish signs. Also, the 21-day moving average (DMA) crossed over 50-DMA before a couple of weeks.

Given the prevailing conditions, one can be bullish and initiate fresh long positions with stop-loss at ₹7,450 and look for a target of ₹7,990.

Published on July 29, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like