Rubber yesterday traded with the positive node and settled 0.9% up at 22300 buoyed by good demand and a rally overseas, though profit-taking may limit the surge. Demand from tyre companies was intact despite record high prices. A few farmers were holding back supplies expecting a further rise in prices. The spot price of most traded RSS-4 rubber (ribbed smoked sheet) rose by 50 rupees to a record high of 21,500 rupees per 100 kg at the Kottayam market in the southern state of Kerala. Weather is relatively better in Kerala for tapping compared to November and December. In yesterday's trading session Rubber has touched the low of 22058 after opening at 22063, and finally settled at 22300. For today's session market is looking to take support at 22132, a break below could see a test of 21964 and where as resistance is now likely to be seen at 22394, a move above could see prices testing 22488.

Trading Ideas:

Rubber trading range is 21964-22488.

Rubber ended higher buoyed by good demand and a rally overseas

Rubber daily stocks at Shanghai exchange came up by 250 tonnes

Spread between Rubber FEB & MAR contracts yesterday ended at 512.00. Spread yesterday traded in the range of 500 to 537.

BUY RUBBER FEB @ 22200 SL 22000 TGT 22450-22640.NMCE

NMCE accredited warehouses Rubber stock remain unchange at 0kgs to 8278kgs.