Chilli may trade positive on fresh buying: Karvy

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Karvy Commodities Broking has come out with its report on spices. According to the research firm, Chilli prices are projected to trade on positive note on extended fresh buying during early trading hours. However, rise in arrivals of fresh crop from producing regions might limit the gains in prices.

Pepper futures prices are expected to continue the corrections on profit booking. However, Prevailing fundamentals are still bullish amid cloudy conditions in Kerala, which are hampering drying and processing of fresh crop. Rising demand for pongal from Tamil Nadu and for sakranti in north India is likely to support pepper prices to recover and remain firm in near term.

Turmeric prices are expected to continue the positive trend on fresh buying during early trading hours. Active demand from bulk buyers at spot markets might also support prices to move up. According to trade sources, fresh orders received from north Indian buyers are resulting in heavy buying from traders and stockiest. This might keep turmeric prices on higher note in near term. After Sakranti fresh crop arrivals is likely to hit the market which might limit the overall gains in turmeric prices.

Jeera prices are expected to trade on slightly positive note on short covering during initial hours. Later on prices are expected to turn bearish amid expectations of higher production in coming season. Ample stocks with stockiest are also weighing down on sentiments. Hence, reduced off take from stockiest might also add to the down side pressure on prices.

Chilli prices are projected to trade on positive note on extended fresh buying during early trading hours. However, rise in arrivals of fresh crop from producing regions might limit the gains in prices.

Cardamom prices are expected to trade on slightly positive note during early trading hours. However, later on prices are expected to resume down trend following the prevailing weak fundamentals. Reduced buying from north Indian buyers due to prevailing cold weather condition might also weigh down on sentiments.

Dhaniya prices are expected to trade on higher note on continued fresh buying. Declined acreage in current sowing season might support dhaniya prices to move up. However, a small correction can be seen during the day which might create fresh buying opportunity at lower levels.

To read the full report click here

Source: http://www.moneycontrol.com/news/brokerage-recos-commodities/chilli-may-trade-positivefresh-buying-karvy_804860.html

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