NCDEX chilli tumbles, trade between Rs.7200-7325: Karvy

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Chilli prices are projected to trade lower on follow through selling. Rising arrivals along with poor export and domestic demand are likely to keep prices under pressure.

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

Source: http://www.commodityonline.com/futures-trading/trading-tips/NCDEX-chilli-tumbles-trade-between-Rs.7200-7325:-Karvy-15608.html

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