Pepper January delivery dropped Rs 229 and settled at Rs 21522/quintal due to weak overseas and local demand as traders expect prices to come down once fresh arrivals start. However, estimates of lower global production and diminishing stocks, limited the downside. Spot pepper dropped -332.75 rupees to 21373.5 rupees per 100 kg in Kochi market. The contract touched the intraday high of Rs 21660/quintal while low of Rs 21360/quintal. Now support for the pepper is seen at 21368 and below could see a test of 21214. Resistance is now likely to be seen at 21668, a move above could see prices testing 21814.

Trading Ideas:

Pepper trading range is 21210-21810.

Pepper ended lower due to weak overseas and local demand

Pepper looks to test support at 21370 and resistance is seen at 21670.

NCDEX accredited warehouses pepper stocks rose 168 tonnes to 1569 tonnes.

HOLD / ADD SHORT PEPPER JAN @ 21580 SL 21700 TGT 21460-21340-21260.NCDEX (STBT)

Spot pepper dropped -332.75 rupees to 21373.5 rupees per 100 kg in Kochi market.