Chilli surges on extended buying

The Chilli futures traded on positive note on Saturday. Futures started the day on positive note on continued buying. Reports of rains in Guntur region further added to the upside and futures ended the day with gains of more then 3%.
Outlook

Chilli June futures are projected to trade on positive note on follow though buying on Monday. Good buying from stokiest at spot market is likely to support the upside. However, prices are vulnerable to decent corrections on profit selling later in the day.
Arrivals at spot market of Guntur were reported around 80,000-1,00,000 bags today (Each bag= 40Kg.). Spot market of Guntur will be closed from May, 20th for a month due to rise in mercury levels.
As per news sources, export demand from Bangladesh, Malaysia is good which is supporting the prices. As per market sources, fresh crop arrivals are likely to remain till early May.
According to derivative analysis, prices and volumes are rising while open interest is falling. Market has a lot of traders initiating from both sides but larger traders may be liquidating into the higher prices.
The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Chilli-surges-on-extended-buying-23366.html)