NCDEX Jeera under fresh selling Resistance seen at 16805

Technically and nbsp;Jeera market is under fresh selling as market has witnessed gain in open interest by 3.3% to settled at 1596 while prices down 60 rupees.

Now NCDEX Jeera is getting support at 16700 and below same could see a test of 16645 levels, and resistance is now likely to be seen at 16805, a move above could see prices testing 16855.

Jeera on NCDEX settled down by 0.36% at 16755 amid higher acreage in coming season due to higher prevailing prices and favourable weather conditions. However, downside seen limited due to heavy rains in Gujarat has raised worries over a delay in sowing in the upcoming rabi season.

Quality and quantity of jeera arrivals have dropped as the season is at its fag end, hitting domestic demand. Moreover, ahead of the new season starting October and the absence of strong demand from bulk buyers capped the upside. At Jodhpur(Raj.) market in Jodhpur, total arrivals are at 150 quintals, up by 50 quintals as against previous day.

At Merta City(Raj.) market in Nagaur(Raj.), total arrivals are at 550 quintals, up by 150 quintals as against previous day. At Unjha market in Mehsana, arrivals were reported at 10000 bags, up by 5000 bags as against previous day.

According to the third advance estimates released by the farm ministry, jeera production was pegged at 608,000 tn in 2018-19 (Oct-Sep), compared with 689,000 tn last year. In Unjha, a key spot market in Gujarat, jeera edged down by 100.3 Rupees to end at 16995.85 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 16645-16855.
--Jeera prices dropped amid higher acreage in coming season due to higher prevailing prices and favourable weather conditions.
--However, downside seen limited due to heavy rains in Gujarat has raised worries over a delay in sowing in the upcoming rabi season.
--Jeera production was pegged at 608,000 tn in 2018-19 (Oct-Sep), compared with 689,000 tn last year.
--In Unjha, a key spot market in Gujarat, jeera edged down by 100.3 Rupees to end at 16995.85 Rupees per 100 kg.

Courtesy: Kedia Commodities