MARKET DEVELOPMENT
Buy MCX CPO June on Dips; Target Rs 490: Emkay
Buy MCX CPO June on Dips; Target Rs 490: Emkay
08/06/2013 (MoneyControl.com) - According to Emkay Commodity Research one can buy MCX CPO June contract on dips or buy at around Rs 485-483 with a stop loss of Rs 480 for price target of Rs 490.
CPO June futures at MCX and BMD ended up tracking expectation of lower inventories and buying support ahead of Ramajan festival. Expectation of supplies continues to remain low amid poor production in Malaysia. Continued fall of Indian rupee has also supported the firm movement in Palm oil.
Market expects that consumption would increase ahead of Ramadan festival. Malaysian Palm oil Board is expected to release the monthly stock and production data on Monday which will provide fresh signal to the price movement.
CPO is likely to trade in range with firm bias on falling output concerns from Malaysia and Ramadan buying support while the extent of upside looks limited on weaker CBOT Soyoil.
Technical:
MCX CPO June contract moved up yesterday indicating positivity. Immediate support is at 480 and resistance is at 493.
Buy on dips should be the strategy for the day.
Contract - June
Strategy - Buy
Entry - 485-483
Target - 490
Stop loss - 480
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
CPO June futures at MCX and BMD ended up tracking expectation of lower inventories and buying support ahead of Ramajan festival. Expectation of supplies continues to remain low amid poor production in Malaysia. Continued fall of Indian rupee has also supported the firm movement in Palm oil.
Market expects that consumption would increase ahead of Ramadan festival. Malaysian Palm oil Board is expected to release the monthly stock and production data on Monday which will provide fresh signal to the price movement.
CPO is likely to trade in range with firm bias on falling output concerns from Malaysia and Ramadan buying support while the extent of upside looks limited on weaker CBOT Soyoil.
Technical:
MCX CPO June contract moved up yesterday indicating positivity. Immediate support is at 480 and resistance is at 493.
Buy on dips should be the strategy for the day.
Contract - June
Strategy - Buy
Entry - 485-483
Target - 490
Stop loss - 480
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.