Rubber has support at Rs 10900/10700: Geofin

Geofin Comtrade report on Rubber 

Advances witnessed in the overseas natural rubber market amidst limited supply bolstered natural rubber prices in the local market. On Monday, RSS4 in the physical market edged higher to Rs.115 a kg while on NMCE, the most active January rubber futures culminated the session more than 1.5 per cent up. However, lingering worries over demand and declining crude oil prices continued to restrict gains. 

On Tuesday, natural rubber retreated following the previous day’s advances in the major international market. TOCOM rubber futures inched lower and so was SHFE and AFET rubber futures after China manufacturing PMI showed an contraction in December. Tumbling crude oil prices and strengthening yen weighed on as well.

RUBBER Jan NMCE 

11560 pose to be the immediate resistance, which it requires to clear to continue the buying sentiments being seen currently. Else a retreat to 11380/11260 may be seen. However, another round of sell-offs may be seen only below 11025. SUPPORTS            TURNAROUND LEVEL           RESISTANCES 

10900/10700                      11560-11025                    11560/11650 

11100/11050                                                               11760/11850 

11380/11260                                                               11920/12050