Fundamental Analysis
NCDEX April Mustard seed futures fell sharply in the morning hours. However, it could not sustain lower levels on short covering and some fresh buying at lower levels.
Lower sowing acreage of mustard seed this year as compared to last year also provided support to bulls.
India’s rape/mustard seed production for the crop year that began Oct. 1 is expected to decline to 5.5 million-6 million metric tonnes due to lower area under cultivation.
The area under Rapeseed/Mustard Seed, as on 28 January, is reported down at 64.36 lh against 66.49 lh in the corresponding period a year ago.
Technical Analysis
Candlestick formed bullish engulfing pattern on Daily charts, which shows bullish market sentiments.
Prices closed below its 10 Day & its 20 Day EMA. 14-Day RSI is at 24.00, which is in oversold zone.
Daily MACD is in negative territory, which indicates bearish market sentiments.
Outlook
Mustard Seed prices are expected to trade lower on account of market poor demand from millers and weakness in other domestic oilseeds (for short term). However, in the long term, overall it is expected to trade lower on account of higher global oilseeds output and huge import of edible oils may provide support to bears.
Courtesy: Angel Commodities
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