Pepper November delivery gained due to short-covering after a sharp fall in its prices though a fall in overseas prices limited the gains.
There was no selling pressure on the spot and activities on the futures market were also limited as is evident from the sharp fall in the turnover. Spot market remained steady on limited activities at the previous levels of Rs 33,300 (ungarbled) and Rs 34,800 (MG 1) a quintal.
Indian parity in the international market continued to remain competitive at $7,500 a tonne (c&f) for Europe and $7,800 a tonne (c&f) for the US. However, the buyers reported to have resorted to a wait and watch mode given the high fluctuation in the futures market here.
According to the latest updates from India Pepper and Spice Trade Association (IPSTA), Kochi, Pepper arrivals slipped to 60 quintals from 150 quintals while offtakes dropped to 100 quintals from 850 quintals on last day.
Spot pepper dropped -155 rupees to 34652.35 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 34820/quintal while low of Rs 34550/quintal.
Now support for the Pepper is seen at 34567 and below could see a test of 34423. Resistance is now likely to be seen at 34837, a move above could see prices testing 34963.
Trading Ideas:
Pepper trading range is 34423-34963.
Pepper ended with gains due to short-covering
There was no selling pressure on the spot and activities on the futures market were also limited
NCDEX accredited warehouses pepper stocks gained by 10 tonnes to 5241 tonnes.
Spot pepper dropped -155 rupees to 34652.35 rupees per 100 kg in Kochi market.
Courtesy: Kedia Commodities
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