As per traders, Kahrif acreage in AP has increased by 30% while rabi sowing is in progress and till first week of November it is 54% up Y/Y.
Arrivals from Madhya Pradesh were report 1,35,000 bags against 1,00,000 bags last week. According to Spices Board data, chilli exports during April- Sep, 2010-11 were down by 35% as compared to the same period last year.
According to derivative analysis, prices have declined while volumes and open interest have increased while.
It is a good indication that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend.
Chilli NCDEX Dec-11 support: 7135 7194 resistance: 7335 7404 Range: 7200-7325