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Mustard Seed-A ‘must have’ commodity in your portfolio!

RM Seed August Contract

CMP: ` 3651 (As on 30th June, 2017)

Buy Range: ` 3651-3560 RM Seed
Targets: ` 3930-4100

Stop loss: < ` 3500 momentum over bears. Also, the oilseed chart has a
huge trend line breakout in its kitty that has taken
One of the major oilseeds, Mustard seed has seen a place on the last day of June. The foremost support
relentless fall since the beginning of this year, thanks can be seen in the pattern of momentum indicators
to a good sowing and harvesting season that span like RSI and MACD. Both these indicators have been
from November to May. This kind of price behavior pointing towards a positive divergence coupled
depends on the momentum of demand and supply with a positive crossover since a long time. Another
and thus it doesn’t remain constant every year. important indicator, ADX, has fully converged
However, the period after harvest season is always and is now powering the positive territory. After
very crucial, i.e. the period from June to October.
After arrivals end, fresh demand can emerge from bullish reversal looks inevitable.
usually new points which may absorb the stored
quantity in few spells. Here the opportunity lies as We recommend buying in RM Seed August contract
after seeing good arrivals, prices are usually down. at Rs 3651 and on dips to Rs 3580-3560 for targets in
Currently, we are almost near this opportunity as the range of Rs 3930-4100. Maintain stop loss below
there is a huge eight months’ time left for next arrival Rs 3500.
season and looking at the steady pace of physical
demand, prices are not going to sustain at lower
levels for long. Let us check the same on technical
charts.

Technically, prices are in an oversold region and
if we look at last six-seven trading sessions then
it becomes clear that bulls are slowly gaining

7 ARIHANT CAPITAL ¡ JULY 2017