NCDEX Pepper June (CMP Rs 29561)

The price of Pepper has registered an inverted head and shoulders breakout during the previous session. This is a bullish formation and the measuring implication of the pattern suggests that the price can advance to levels of Rs 30000 and/or Rs 30250 levels. The momentum indicators are also in buy mode which displays strength in the counter. Thus, traders can look to buy between Rs 29650--Rs 29300 levels with a stop loss placed below Rs 29047 levels for the above mentioned targets.

NCDEX Chana– June (O: 2532 H: 2554 L: 2526 C: 2538):

The price of Chana has formed a head and shoulder pattern on the intraday charts. A breakdown from the said pattern would be confirmed when the price breaks below the neckline level of Rs 2529 levels. The sell signal given by the stochastic indicator is also a sign of weakness in the counter. The prices of Chana will face fresh selling pressure once it starts trading below the neckline level of Rs 2529.

We recommend traders to go short below Rs 2529 levels with a stop loss of Rs 2551 levels for downside targets of Rs 2500/ Rs 2475 levels.

NCDEX Pepper – June (O: 29324 H: 29540 L: 28600 C: 28921)

The price of The price of Pepper witnessed a sharp fall on 25th May, 2011 and registered a close below its key moving averages which had been providing good support for the price of pepper during the recent uptrend. Since then the price of Pepper has been consolidating in a narrow range of Rs 29450--Rs 28825 levels. But the key observation to be made on the daily charts of Pepper is that the price has been taking shape of a Reverse/Bearish Flag formation. The Reverse Flag price pattern is a continuation pattern and suggests that the price will gain momentum for a fresh down move after a small consolidation. A break below Rs 28790 levels will confirm the pattern and will bring about fresh downside momentum in the price of Pepper. The other observation that supports the bearish argument is that the MACD indicator has also given a sell signal.
Hence, we recommend traders to sell below Rs 28790 levels with a stop loss placed above Rs 29257 levels for downside targets of Rs 28450 and Rs 28000 levels.