The rate of castor seeds has actually been on the decrease considering that mid-January. The futures agreement on the National Product and Derivatives Exchange ( NCDEX) fell off the resistance at 7,600. As bears continued to control, it slipped listed below an essential assistance at 6,850 in the 2nd week of February. This turned the outlook bearish and it is presently trading around 6,090.
The fundamental rate action reveals that the down momentum stays strong. Although there is a possibility the agreement will see a restorative rally to 6,270 from the present level of 6,090, we anticipate it to resume the decrease from 6,270, which is a resistance.
In 2 to 3 weeks, castor seed futures will more than likely see their rate drop to 5,780. This is a strong assistance and, for that reason, a drop listed below this level is less most likely.
Likewise checked out: India’s castor output seen 15% greater at 19.46 lakh tonnes for 2022-23
Trade technique
One can start fresh brief positions on castor seed futures at the present level of 6,090. Include more shorts if the rate increases to 6,270. Location stop-loss at 6,420 in the beginning. Customize the stop-loss to 6,020 when the agreement falls listed below 5,900. Liquidate the shorts at 5,780.
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