Pepper February delivery dropped Rs -147 and settled at Rs 12651/quintal on sluggish domestic demand and rising arrivals overall for this week market look to take more support as sentiment is down ahead of the arrival season. Export demand is also not good and creating pressure on spot market where today pepper fell by 228 rupees to end at 13,256 rupees per 100 kg in Kochi. India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks, pepper exports stood at 1,750 tonnes, down 32 percent on year, the spices board said. Now support for the pepper is seen at 12553 and below could see a test of 12455. Resistance is now likely to be seen at 12806, a move above could see prices testing 12961.

Trading Ideas:

Pepper trading range is 12455-12961.

Pepper dropped on sluggish domestic demand and rising arrivals

Export demand is also not good and creating pressure on spot market

Spot pepper market fell by 228 rupees to end at 13,256 rupees per 100 kg in Kochi.

SELL PEPPER FEB @ 12850 SL 12945 TGT 12780-12722-12640.NCDEX

Support for the pepper is seen at 12553 and below could see a test of 12455.