Technical Outlook & Trading Strategy:-
We reiterate our bullish bias on Pepper. The prices of Pepper have been taking support at the rising trendline that has been taking shape since 14th Mar, 2010.
This trendline has been providing strong support for the prices of pepper on every correction from higher levels.
The recent correction from the highs of Rs 30999 levels as on 08th May, 2011 was also on the back of declining volume which is a clear indication that the prices weren’t under any real supply pressure.
Sustenance above the trendline support will see the prices of pepper rally towards the Rs 30525 / Rs 30950 levels over the upcoming sessions of trade.
The RSI indicator has also given a fresh buy signal. We recommend traders to buy 50% at current levels and again on dips between Rs 29425--Rs 29325 levels with a stop loss placed below Rs 28979 levels for upside targets of Rs 30525 / Rs 30950 levels, expected to be achieved over the upcoming 3-4 sessions of trade.
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