Pepper February delivery dropped Rs 153 and settled at Rs 22360/quintal due to profit booking at higher levels. Further, the reports of increased arrivals are weighing on the prices. However, lower level buying for the commodity in the short term may restrict the downside. Arrivals from the new crop have started in some of the interior markets of Kerala but in very small quantities. Spot pepper dropped -136.85 rupees to 22060 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 22575/quintal while low of Rs 22175/quintal. Now support for the pepper is seen at 22165 and below could see a test of 21970. Resistance is now likely to be seen at 22565, a move above could see prices testing 22770.

Trading Ideas:

Pepper trading range is 21954-22754.

Pepper ended weak  due to profit booking at higher levels.

Pepper looks to test support at 22165 and resistance is seen at 22565.

NCDEX accredited warehouses pepper stocks fell by 12 tonnes to 2096 tonnes.

SELL PEPPER FEB @ 22400-450 SL 22620 TGT 22280-22100-21950.NCDEX

Spot pepper dropped -136.85 rupees to 22060 rupees per 100 kg in Kochi market.