Thursday, December 23,
NCDEX Steel Jan contract opened upside flat at 26560 per tonne against previous close of 26550, reached an intraday high of 26750. The contract last traded at 26470 down by 80 rupees after reaching an intraday low of 26450.
Steel future prices have risen by five percent in last three weeks. Steel future prices are likely to fall from the present levels on the back of profit booking and could test 26100-25800 within next few trading days.
Support for Steel is seen at 26100 and below that, it could see a test of 25500. While Resistance levels are 26750 and 27000 respectively. 14 days RSI for NCDEX Steel Jan contract is at 76 levels, which shows that Steel prices are overbought.
Short term traders can sell NCDEX Jan Steel long contract near 26750 keeping a stop loss of 27150 and wait for targets of 26200-25900.
Physical Market:
Physical trading remained silent, not much of buyers were seen in the market. Primary reasons for this are
1. Liquidity Problem
2. Expensive Raw material
3.Increasing gap between regular and advance payment.
4. Low margins
5.Uncertain outlook in the market
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