| Date: |
23-07-2010 |
| Subject: |
India Chilli Futures May Recover On Technical Cues |
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Higher Chilli stocks and improving sowing condition intensified further selling in the chilli futures. Benchmark August Chilli futures ended the session sharply lower by Rs 80 or 1.70 percent at Rs 4562.00 per 100 kg and the open interest added 7.65 percent to 5,905 tonnes, indicating short selling. Volume traded surged to 3,780 tonnes from 1,550 tonnes. Chilli exports registered growth of 33 percent to 56,750 tonnes while export revenue gained 39 percent to 34,943.25 lakh.
Technically, benchmark August Chilli futures contract continued to close below the short term and long term EMA's, indicating short term and long-term trend is weak. The 14-day RSI ended the last session at 32.01, indicating the counter is at near oversold zone.
Technically, benchmark August Chilli futures contract has strong support at Rs 4540 and then at Rs 4500. The counter has resistance at Rs 4625 and then at Rs 4680 per 100 kg.
Source : indiainfoline.com
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