Chilli tumbles on profit selling

The Chilli futures traded very volatile on Thursday. Prices started the day on positive note however, fell drastically on active profit selling on gains.
However, in absence of fresh cues from spot market futures witnessed very choppy trade and ended the day in slightly negative note.
Outlook

The Chilli April futures are projected to continue the losses initially on profit selling on Friday. However, fresh buying at lower levels is expected to today as spot market of Guntur will also resume its activity today. However, higher arrivals might limit the gains.
Spot market of Guntur will resume its activity today after holiday of 2 days. As per news sources, export demand from Bangladesh, Malaysia is good while major importers like US and Europe are moving towards China for exports.
According to traders, around 40 lakh bags have arrived till now and further 30-40 lakh bags might come till May. They are expecting arrivals might remain till early May after that market will be closed for 1 month.
As per trade sources, Chinese chilli crop has be improved by 10-15% this year from last year’s losses.
According to derivative analysis, prices, volumes and open interest all are falling. If the total open interest is falling off and prices are declining, the price decline is being caused by disgruntled long position holders being forced to liquidate their positions. It indicates that downtrend will end as all the sellers have sold their positions, creating fresh buying opportunity at lower levels.

(Source: http://www.commodityonline.com/futures-trading/technical/Chilli-tumbles-on-profit-selling-22948.html)