SHUBHLAXMI NCDEX

The adjacent chart shows price movement of NCDEX chana 2-month contract. It has formed short-term correction, which has retraced 50% of the previous up move. Near the key Fibonacci level it found support at various parameters. From there the agri-commodity has started the next leg up. The short-term momentum indicators are in bullish mode. From a short-term perspective chana is expected to test the high of Rs.3,287. Once the high is crossed it will be poised for a larger upside. The subsequent level on the upside will be Rs3,458. On the other hand, Rs.3,090 and Rs.3,034 will act as a key support zone.

The adjoining chart is of NCDEX gram chana October contract. We can observe that gram chana was trading in an upward sloping channel which broke on the downside. For the past few trading sessions it has been trading in a sideways manner. Our sense is that it is forming a triangle and we expect it to break on the upside. The daily momentum indicator has been oscillating around the equilibrium line which is in sync with the price action. So the strategy to trade gram chana is to buy on decline near the Rs3,000 level which is the daily lower Bollinger Band for the targets of Rs3,240, which is the swing’s high and above that we expect Rs3,400, which is the weekly upper Bollinger Band. The reversal of the bullish stance is placed below Rs2,875, which is the 50% retracement of the rise.

The adjoining chart is of NCDEX gram chana October contract. We can observe that gram chana has been consolidating in a range for the past few trading sessions. The agri-commodity has taken support at the 40-daily exponential moving average and the daily lower Bollinger Band. The daily momentum indicator has completed its pullback to the equilibrium line. We expect this consolidation to break on the upside and targets of Rs3,305, which is the previous swing’s high and Rs3,514, which is the weekly upper Bollinger Band. The reversal of the bullish stance is placed below Rs3,024- 3000 level, which is a crucial support area for the agri-commodity

As evident from the chart, the commodity is nearing the key resistance zone of 50% retracement level, which is currently placed at Rs3,276, and the gap area (Rs3,297). Also the 40-daily exponential moving average is placed at Rs3,295 and hence it is the major hurdle for bulls going forward. On the lower side, it is likely to retest the lower trend line around Rs3,044 in the short term.