FUNDAMENTALS

Sugar traded mostly steady at the benchmark centres on slack demand due to month-end crash crunch and lack-luster trade. Govt. sops have lost their sheen and fail to enthuse the traders any more. However, the festive demand is likely to support the market till Diwali. Reports of sluggish Brazil sugar production are likely to provide mild support to the sugar prices in the short term. Meanwhile, the additional 1.45 lakh tonnes of sugar released for sale in the open market are seen capping any upside in sugar prices. The long term outlook also remains largely bearish, given the huge supplies in the domestic as well as global markets. The global market is headed for a surplus stock of 10.8 MMT.

TECHNICALS

Candlestick pattern suggests indecision in the market; so do RSI, which has flattened out just below overbought region. Prices remain above the short term EMAs, supporting a firm market. MACD is rising in the positive territory, indicating further bullish momentum in the market, while Stochastic is falling in the neutral zone, suggesting weakness. Sugar futures are likely to trade range-bound in the next session with a firm bias. Next resistance is seen emerging at 1245 level.

WEATHER

Late season rains in the north and south India aid developing sugarcane crop.

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