Pepper to trade with negative bias: Sharekhan

Sharekhan has come out with its report on Pepper. The research firm expects pepper to trade with a negative bias for a target of Rs 33820, which is a crucial swing low. The reversal of the bearish stance is placed above the crucial resistances at the 20 and 40-DMA’s.

According to NCDEX Pepper April contract chart, pepper has broken down from an upward sloping channel. On a longer time frame it has faced resistance at the 20-weekly simple moving average. It is currently trading below the 20-and 40-daily moving averages (DMA’s) i.e. Rs36,308 and Rs36,910 respectively, which are crucial resistances for the agri-commodity in the short-term. The momentum indicators have a negative crossover, which indicates a bearish bias. Considering all the above factors we expect pepper to trade with a negative bias for a target of Rs 33,820, which is a crucial swing low. The reversal of the bearish stance is placed above the crucial resistances at the 20-and 40-DMA’s. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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