Chilli Likely To Extend Gains

On Saturday, NCDEX Chilli futures benchmark February contract closed up 1.12 % at Rs3777 per quintal, traded in the ranges of Rs3785-3731 per quintal. The open interest for the contract increased 4.21 % to 1980 contracts as against Friday, indicating fresh buying and the volume traded decreased to 430 lots from 625 lots as against Friday.

In the daily technical charts, NCDEX Chilli futures benchmark February contract closed above 9 day EMA of Rs3633.80 and above 50 day EMA of Rs3682.00 per quintal, indicating short term and long term bullishness. Chilli February closed above 9 day SMA of Rs3603.00 per quintal, supporting the intraday bullishness.

The MACD is in the negative zone but approaching the positive zone supporting upward trend. The technical indicator 14 day RSI is at 66.55, indicating that the contract is neither in the over sold or over bought region.

Technically NCDEX Chilli February is having intraday resistances at Rs 3797.6 and Rs 3818.3 and supports at Rs 3743.6 and Rs 3710.3 per quintal respectively and Rs 3764.3 per quintal will be crucial price level.

Technically the overall trend is positive so Chilli futures are expected trade with gains in today’s trading sessions .