Update on Agri Commodities...April 5, 2016

Soyabean

  Flared and made a high of 4200 mark in yesterday's trading session.  We are holding long above 3840 mark. Still not able to mint money... Need not to worry at all. Watch more

Now what to expect???

 

Support at 4000 and Resistance at 4200

 

Two consecutive closes above 4200 will see rally to remain continue till 4300---4450+ mark in days to come

 

Revise stop loss below 4000 on closing basis 

Soyaref

Rally continue and made a high of 656.90. Above 645... our target intact 660---670+ mark

 

Revise stop loss below 645 on closing basis

 

CPO

 

 Rally continues and made a fresh high of 565.90. We are holding long from 490 mark. Too recommended buying above 555 mark

Now what to expect???

Support at 555 and Resistance at 568---576

 

Still looks positive and could test its resistance level of 568---576 mark in days to come. Further upside rally will see only weekly close above 576 mark

 

Revise stop loss below 555 on closing basis

 

 

 

Rmseed

  Too flared and made a high of 4330 mark. We recommended buying above 4220 and holding long from 3970 mark

Now what to expect???

Support at 4220 and Resistance at 4330

Close above 4330 will see further upside rally till 4380---4450+ mark in days to come

Revise stop loss at cost to cost

Chana

  Flared like anything and hit 4918 mark. We clearly indicated to buy above 4400 and 4600 mark. Minted money or not???

Now what to expect???

 

Hurdle at 4740 and Support at 5030

 

We already booked full profit... Now we will expect range bound trading in Chana for next few trading sessions

 

Trade safely with levels only... Anything seems will update via SMS

 

 

 

 

 

Guarseed

 

 

 

  Told to buy Guarseed around 3210---3200. Just made a high of 3313. We booked part profit around 3300

Now what to expect???

Support at 3200 and Resistance at 3330

 

Two consecutive close above 3330 will see further upside rally till 3380---3450+ mark in days to come

 

Revise stop loss below 3200 on closing basis

 

 

Jeera

 

  Told to buy Jeera around 15600---15200. Just made a high of 16150. Clearly indicated to buy and accumulate in panic

Now what to expect???

Support at 15600 and Resistance at 16200

 

Two consecutive closes above 16200 will take to 16500---16850+ mark in days to come

 

Book part profit and revise stop loss below 15600 on closing basis

 

 

Dhaniya

 

 

 

  Clearly indicated to buy Dhaniya above 7050 for the upside target of 7600---8000. Just made a high of 7605. Minted money or not???

Now what to expect???

Close above 7600 will see further upside rally till 7900---8000+ mark in days to come

 

Revise stop loss below 7200 on closing basis
 

 

More will update soon!!

 

  

 

 

 

 

 

 

 

 

 

 

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Expectations and Imapct of Repo Rate cut...

Expectations on Repo Rate Cut

The Reserve Bank of India left its benchmark repo rate at 6.75 percent during the meeting held on February 2nd, as expected. Today we are expecting rate cut by 25 basis points. Interest Rate in India averaged 6.71 percent from 2000 until 2015, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.25 percent in April of 2009. Interest Rate in India is reported by the Reserve Bank of India.

Impact: 

The correlation between interest rate and stock market is fairly indirect both are tend to move opposite. A decrease in the interest rate will prompt investor to move money from income generating assets such as bond market to equity market thus this rate cut will be positive for the market.

More will update soon!!

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Update on Jet Airways...

JET Airways...

We have seen mind blowing rally from lower levels and now trading around 600 mark. It looks super on technical charts and could test 640 mark. Three consecutive closes + weekly close above 640 will see further upside rally till 760---840+ mark in days to come.

Support and stop loss intact below 530 on closing basis

Why we like this stock?

There is a big turnaround in the stock in terms of financials. EIBTDA margin from about 1% odd what we have seen in the last quarter that the company delivered an EBITDA margin of about 15.8% odd. 

On top of it, the passenger traffic growth has been quite good. So, the company witnessed a passenger traffic growth of about 21% odd. 

What we are expecting in this quarter for the industry?

 The passenger traffic growth has been even better at about 23% odd. The aviation turbine fuel prices have also corrected by 13% quarter on quarter, so the benefit of that is again expected to percolate on the EBITDA margin side. 

We are witnessing the industry is still not competing aggressively on the price front and which we would expect margins for this company to expand to about 17% odd in this quarter.  Going forward on a stable basis we would expect margins to be in the range of 12% odd. We expect a significant turnaround in the bottom line of about Rs 911 crore this year and about Rs 1,700 crore next year. This stock is trading at 0.6 time EV by sales compared to the market lead at about 2 time EV by sales. 

So, from overall perspective we expect that this company will be big beneficiary of the jump in passenger traffic growth along with the lower aviation turbine fuel prices."

More will update soon!!

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