Crude palm oil futures fell to Rs 1,198 per 10 kg on 26 April as participants trimmed open interest figures according to their interest. Malaysian palm oil futures dropped 0.84 percent to 3,894 ringgits on Bursa Malaysia Bhad.
Crude palm oil traded in negative territory after a lapse in the evening session.
Agri commodities have been above the 50, 100 and 200-day moving averages, but are below the 5 and 20-day moving averages on the daily chart for the May series. The momentum indicator relative strength index (RSI) stands at 49.34 indicating a neutral movement in prices.
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Navneet Damani, Vice President, Motilal Oswal said, “MCX CPO is making high peaks and high troughs on daily chart which indicates strength in commodity price. Going forward, Rs 1,090 remains a strong support and as long as it is trading above the support zone, bias remains. An intermediate support is placed in the range of 1,130-Rs 1,135 levels. “
The RSI is well above the midpoint of 50, indicating strong commodity prices. Thus, shopping at the dip is recommended, Damani said.
In the futures market, crude palm oil (CPO) for April delivery reached an intraday low of Rs 1,212 on MCX and an intraday low of Rs 1,196.10 per 10 kg. The CPO has so far touched a low of Rs 883.10 and a high of Rs 1,231 in the current series.
CPO delivery for April declined by Rs 8.70 or 0.72 per cent to Rs 1,198 per 10 kg which was traded for 1,866 lots at 19:58 am IST.
CPO delivery for May declined by Rs 9.20, or 0.80 per cent, to Rs 1,141.90 per 10 kg with a turnover of 5,880 lots.
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The contracts for April and May are valued at Rs 153.94 crore and Rs 350.68 crore respectively.
Kshitij Purohit, Product Manager, Currency and Commodities, Capitalavia Global Research Ltd, said, “MCX CPO is trading with negative bias and prices have fallen by more than 40 points in the previous session from resistance zone of Rs 1,182-1,190. We can expect the bear to dominate and support the Rs 1,130- Rs 1,120 level. “
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