MUMBAI: Indian rubber futures extended gains on Friday for the third straight session on a firm Tokyo market and rising oil prices, analysts said. "Global cues are strong.
Tokyo market ended higher and oil prices are rising again," said Suresh Mantri, an analyst with Ventura Commodities Pvt Ltd. Tokyo rubber futures closed a touch higher on Friday as firm oil prices and a weaker yen helped boost prices rebound.
Oil rose above $104 a barrel on Friday, bouncing back from losses in the previous session as the market focused back on a weakening US dollar and the US economic outlook. Natural rubber prices often benefit from high crude prices because investors believe expensive oil will encourage a shift from synthetic rubber, a petroleum product.
Tight supply in the physical market is also boosting the market, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd. Total stocks in the National Multi-Commodity Exchange (NMCE) warehouses have fallen about 45 percent to 4,016 tonnes in the last one month, the exchange data showed.
The benchmark May contract would face initial resistance at 10,840 rupees and the next at 10,960 rupees, said Mantri. Support is seen at 10,650 rupees.
Tokyo market ended higher and oil prices are rising again," said Suresh Mantri, an analyst with Ventura Commodities Pvt Ltd. Tokyo rubber futures closed a touch higher on Friday as firm oil prices and a weaker yen helped boost prices rebound.
Oil rose above $104 a barrel on Friday, bouncing back from losses in the previous session as the market focused back on a weakening US dollar and the US economic outlook. Natural rubber prices often benefit from high crude prices because investors believe expensive oil will encourage a shift from synthetic rubber, a petroleum product.
Tight supply in the physical market is also boosting the market, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd. Total stocks in the National Multi-Commodity Exchange (NMCE) warehouses have fallen about 45 percent to 4,016 tonnes in the last one month, the exchange data showed.
The benchmark May contract would face initial resistance at 10,840 rupees and the next at 10,960 rupees, said Mantri. Support is seen at 10,650 rupees.
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