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    Dhaniya January                     BUY                                                       Dhaniya

    CMP: Rs 5618 (As on 04th Dec 2017)                   MACD are well in the positive divergence with
                                                         a crossover while ADX has decisively shifted in
    Buy on dips: Rs 5400-5380                            the bullish territory. Prices are also now above
                                                         the strategically important ‘three bands-three
    Targets: Rs 6000-6400                                base’ moving average. There is still enough
                                                         time left for next crop to arrive. Fundamental
    Stop loss: < Rs 5200                                 reports are pointing towards a low production
                                                         due to decreased acreage. This coupled with a
    Dhaniya, once touted as one of the most              low carryover stock due to GST implementation
    speculative agro commodity on trading bourses,       is likely to fuel price rise. All in all, traders are
    slipped into sluggish price movement amid            having a very good opportunity in Dhaniya
    falling volumes and lackluster trading since the     which can help finish the current year with a
    start of 2016. However, there were a couple of       bang!
    spells of decisive movement but those were not       We recommend buying in Dhaniya January
    significant to bring in a sustainable rally. Prices  contract on dips to Rs 5400-5380 for targets in
    declined to as low as Rs 4200 per quintal in         the range of Rs 6000-6400. Maintain stop loss
    October this year, equating the bottom formed        below Rs 5200.
    in 2012 during the same month. Meanwhile, the
    price crash seen in October this year proved to
    be a blessing in disguise as the news of a low
    acreage for next Dhaniya crop due in April’2018
    coincided with low prices and turned the
    attention of bargain hunters who barged on it as
    a hot commodity.

    On technical charts, we can see a very significant
    trend line breakout that has successfully
    brought the much needed daily close above the
    resistance line. There is a positive movement
    emerging in momentum indicators. RSI and

    7 ARIHANT CAPITAL ¡ dECembER 2017

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