Monday, December 27,
NCDEX Steel Jan contract opened up at 26700 per tonne against previous close of 26660, made an intraday low at 26700. The contract last traded at 26910 up by 250 rupees near its intraday high of 26930.
Steel future prices have risen by six percent in last four weeks. Steel future prices are likely to fall from the present levels on the back of profit booking and could test 26500-26000 within next few trading days.
Support for Steel is seen at 26600 and below that, it could see a test of 26100. While Resistance levels are 27100 and 27450 respectively. 14 days RSI for NCDEX Steel Jan contract is at 79 levels, which shows that Steel prices are overbought.
Intraday traders can sell NCDEX Jan Steel long contract near 26920 keeping a stop loss of 27250 and wait for targets of 26600-26300.
Though physical demand remained low and buyers remained cautious, according to market participants ,semi finished prices have over hiked in last 4-5 weeks but finished steel prices are not moving in the same proportion.
According to manufacturers based in Hyderabad, prices might go up slightly from this level as Vizag steel (RINL) has increased its pig iron prices but demand remained low for finished steel.
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