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Dhaniya January BUY Dhaniya

CMP: Rs 5618 (As on 04th Dec 2017) MACD are well in the positive divergence with
a crossover while ADX has decisively shifted in
Buy on dips: Rs 5400-5380 the bullish territory. Prices are also now above
the strategically important ‘three bands-three
Targets: Rs 6000-6400 base’ moving average. There is still enough
time left for next crop to arrive. Fundamental
Stop loss: < Rs 5200 reports are pointing towards a low production
due to decreased acreage. This coupled with a
Dhaniya, once touted as one of the most low carryover stock due to GST implementation
speculative agro commodity on trading bourses, is likely to fuel price rise. All in all, traders are
slipped into sluggish price movement amid having a very good opportunity in Dhaniya
falling volumes and lackluster trading since the which can help finish the current year with a
start of 2016. However, there were a couple of bang!
spells of decisive movement but those were not We recommend buying in Dhaniya January
significant to bring in a sustainable rally. Prices contract on dips to Rs 5400-5380 for targets in
declined to as low as Rs 4200 per quintal in the range of Rs 6000-6400. Maintain stop loss
October this year, equating the bottom formed below Rs 5200.
in 2012 during the same month. Meanwhile, the
price crash seen in October this year proved to
be a blessing in disguise as the news of a low
acreage for next Dhaniya crop due in April’2018
coincided with low prices and turned the
attention of bargain hunters who barged on it as
a hot commodity.

On technical charts, we can see a very significant
trend line breakout that has successfully
brought the much needed daily close above the
resistance line. There is a positive movement
emerging in momentum indicators. RSI and

7 ARIHANT CAPITAL ¡ dECembER 2017