Rubber prices may go down to Rs 17400-17240: Geojit

 Chinese economy growth slows down for the seventh consecutive quarter. Third quarter GDP rise 7.4 per cent as anticipated and industrial production increase 9.2 per cent against the estimates of 9.0 per cent in September. Chinese Academy of Tropical Agricultural Sciences says China plans 14000ha of new rubber planting and replant 10000ha of old rubber trees in next five years. According to ANRPC, rubber production among its member countries may increase to its highest level in at least nine years to 11.1 million metric tonnes in 2013. NCDEX have introduced changes in packing method for rubber and delivery shall be in 50kg bales packed with polythene sheets Natural rubber imports by China remain unchanged on month on month basis. The country imported 210000 tonnes of natural rubber in September. However, on year on year basis, the imports showed a decline of 12.5 per cent. According to Rubber Board, natural rubber production in India rose 2.2 per cent in September to 82000 tonnes while consumption increased by 8.9 per cent to 81500 on YOY basis.
 

Technical View:
 

Further weakness have been induced with the break of 17900 in the previous session. Yet, there is a minor trend line support near 17700, which if breached convincingly could call for 17570 or more to 17400/17240. Alternatively, a pullback towards 18050 or even higher to18300 regions may be seen if 17700 is held downside.