Rubber has resistance at Rs 11900/12050: Geojit

Government appointed special sub-committee likely to meet this week to formulate the much awaited National Rubber Policy. The government panel is also likely to formulate measures aimed at boosting domestic demand for rubber and somehow protect farmers from the steep fall in prices. 

China’s natural rubber imports in October stood at 300000 tonnes. 

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.6 percent to 174833 tonnes last week. 

Rubber Mark and Market Fed to buy rubber by paying Rs.5 a kg above the Rubber Board rates.

 Reports says Thailand Rubber Estate Organisation bought 400 tonnes of natural rubber to support falling prices.

 Inventories in Qingdao, China’s main rubber-trading hub, -3.1% to 139,400 mt: Qingdao International Rubber Exchange Market. 

Japan-based Yokohama Rubber today says it has started commercial production at its first manufacturing plant in India at Bahadurgarh, Haryana with an investment of over Rs 300 crore and the unit has an installed capacity of 2,000 tyres per day. 

Thailand, Indonesia and Malaysia likely to meet on Nov. 20-21 to discuss plans to set prices together and reduce supply.

 Indonesian Rubber Association makes a second appeal to its members to impose strict limit on sales until the second quarter of 2015 

TECHNICAL VIEW 

RUBBER Dec NMCE 

Even as the broad trend stays bearish, as long as the support at 11450 remains undisturbed, the possibility of a pullback to 12100 ranges remains open. However, it is mandatory to break and sustain above 12250 to lessen the prevailing weakness. Else it may succumb to higher level selling. 

Resistances        TURNAROUND LEVELS     Supports 

11900/12050    12250-12100-11450      11650/11540 

12120/12250                                          11450/11350 

12380/12500                                          11200/11100