OCT 6 MONDAY
PEPPER
SHORT TERM TREND : BEARISH
LONG TERM TREND : BEARISH
S1 RS 12900 , S2 RS 12750
R1 RS 13250 , R2 RS 13400
STAY SHORT.
Pepper futures drop despite strong fundamentals.
The pepper future market last week witnessed
high volatility and prices continue to decline
after mid week even as thge fundamentals were
remaining strong.
Tight supply position in all the origins coupled with
indications of potential demandin the last quarter
of the current year , appears to have pushed up
the price in other origins.
Availability of black pepper in the market also
appears to be tight.
Indications are that many of the buyers have not
covered for the last quarter of the year while
at least 70 % of the next years requirements
also would have to be covered.
All contracts fell during the week and the decline was
from Rs 387 to 499 a quintal.
All the three contracts dropped below the spot
price of Rs 13800 a quintal.
Widening gap between the futures and the spot
price is not a good sign.
Sunday, October 5, 2008
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