Page 7 - VP-APRIL 2016

Jeera May Jeera

CMP: ` 16310 (As on 4th Apr, 2016) demand is actually soaring. So, as mentioned above, this season
of Jeera is in bullish cycle.
Buy on dips: ` 15800-15750 Technically, prices have recently broken above a bullish
continuation pattern called ‘ascending triangle’ and it is to be
Target Price : ` 17100-18500 seen that when will the traders’ remorse stage will occur as it
will provide the best opportunity to enter long. Momentum
Stop-Loss: < ` 14950 indicators RSI & MACD are going strong in favor while ADX
is treading above 35 which suggest that an ample scope for
Jeera or cumin seed is an India dominated further rise is comfortably there.
commodity. The flavoring spice is used in many We recommend buying Jeera May on dips to Rs 15800-15750
therapeutic ways as well. Since India contributes 75 for targets in the range of Rs 17100-18500. Maintain stop loss
to 80 percent of worldwide production, Jeera prices below Rs 14950.
usually sees frequent spells of high volatility as any
local factor be it weather, domestic demand or carry 7 ARIHANT CAPITAL ¡ APRIL 2016
forward stocks emerges in a season or two to impact
demand-supply scenario at International level.
Presently, Jeera is in the last leg of harvest and the
recent rally that started in first week of February, i.e.
during peak supply period, has its strong foothold.
Rains in Gujarat & Rajasthan during Feb-March
period has resulted in lower than estimated output
and if we talk about superior quality crop then the
numbers further declines. Also, at International
scenario, things are not very smooth as crop in
another major exporter Syria is not up to the mark.
All in all, we have a tight supply scenario as there is
negligible support from carry forward stocks while