India’s sugar output set to rebound from 7-year low on good rain. Uttar Pradesh is reportedly heading for a new record of sugar production for the 2017-18 crushing season, which begins next month. A recent study from rating agency ICRA estimated the state's sugar production to stand at 9.7 million tonnes (mt) in the upcoming season this year.

Technical Outlook

On daily chart, the NCDEX Sugar prices have broken below the rising trend line which confirms the current down trend in the prices. In addition, prices have been finding resistance the 50 EMA for quite a sometime. Moreover 13 Exponential Moving Average and 50 Exponential Moving Averages are in bearish crossover which will add to the bearishness in the commodity. 

As the prices looks weak on the chart, one can initiate sell position in NCDEX Sugar at CMP Rs.3710 or on rise in prices till RS.3800 levels with a stop loss to be kept above Rs.3927 for the downside target of Rs.3400. Overall, we hold our bearish view in Sugar for next one to two months.

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