Pepper Likely To Extend Gains On Strong Demand Outlook .

Fresh buying and short covering amid ideas that the recent drop in the prices might help spur the exports from India buoyed NCDEX Pepper futures closed with smart gains for the third consecutive session as sentiments.

Pepper July contract rallied on the break of the resistance level Rs 17120 and touched new high of Rs 17965 level. The contract ended the Saturday's session higher by 2.30 percent at Rs 17844 after hitting the high of Rs 17965.

The open interest position in the contract dipped and the volume traded increased in the contract, indicating short covering.

The counter closed above the short term and long term EMA's for the seventh consecutive trading sessions, indicating short term and long-term trend is firm.

The 14-day RSI continued to move higher in the netural zone and closed the last session at 69.83, indicating short-term trend is firm. The averages in the MACD reached in the positive zone, indicating short-term trend is firm.

Technically, July pepper contract is having next resistance at Rs 17965 and if the counter breaks above Rs 18000 levels, the counter will touch new highs. The counter has support at Rs 17500 and then at Rs 17450 level.


Source : India Infoline