Chilli February futures prices are projected to trade slightly positive on follow through buying during early trade of the day.
According to trade sources, today arrivals might increase due to sudden rise in prices which might shade yesterday’s gains during later hours.
Daily arrivals at spot market of Guntur declined to 30,000 bags on Friday against 50,000 bags (1bag-40Kg.).
Export inquires from Bangladesh and Pakistan are remaining poor. Therefore, fresh arrivals season along with subdued exports are likely to have negative impact in coming days.
Andhra Rabi chilli area as on February 01th is reported 0.50 lakh ha v/s 0.46 lakh ha yr ago.
Chilli production estimates for this season is estimated around 12.5-13 lakh tonnes v/s 10.5- 11 lakh tones last year.
According to derivative analysis, prices, volumes and open interest have increased. It indicates that market is attracting larger numbers of traders willing to open positions from the long side and hold them. Traders are more confident that prices will continue to climb in favor of a working long.
Chilli NCDEX Feb-12 support: 5903 6015 resistance: 6235 6321 Buy at 6102 TP 6240 SL 6010
Courtesy:Karvy Comtrade Ltd.
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