Pepper recovered slightly from their contract lows in the last hour of trade as some short-covering offset weak export demand and improved arrivals. Fundamentals are weak. Dull cues from overseas market, weak spot and fresh arrivals are hurting sentiment. Spot pepper dropped by 219 rupees to end at 13,388 rupees per 100 kg in Kochi.

February delivery dropped Rs 153 and settled at Rs 13245/quintal. The contract touched the intraday high of Rs 13449/quintal while low of Rs 13170/quintal. Now support for the pepper is seen at
13127 and below could see a test of 13009. Resistance is now likely to be seen at 13406, a move above could see prices testing 13567.

Trading Ideas:

Pepper trading range is 13000-13550.

Pepper recovered slightly from lows on short covering still ended down

Still fundamentals are weak as dull cues from overseas market, weak spot and fresh arrivals.

Resistance for the pepper is at 13130 and support is at 13405.

Spot pepper dropped by 219 rupees to end at 13,388 rupees per 100 kg

BUY PEPPER FEB ON DIP @ 13100-150 SL 13020 TGT 13220-13290-13365.NCDEX