Go short for target Rs 5,300 on NCDX chilli: Sharekhan

MUMBAI: Chilli traders are being advised to go short at current levels placing stop loss above Rs 5,600 for the target of Rs 5,300 as the NCDX chilli contract is likely to find support around Rs 5,300.

The support for chilli in the coming sessions may be near 20 WSMA (weekly simple moving average). Once this is breached, chilli may test Rs 5,000 levels on the downside, according to a research analysis on commodities by Sharekhan Securities.

NCDEX chilli is currently retracing its previous corrective move from Rs 5,918 to Rs 4,569. For last three weeks chilli is in pull back mode and so far has retraced 78 per cent of its corrective move and is close to the resistance of a downward sloping trendline near 5700 level, the report states.

���The volume is significantly lower during this pull back which is a typical characteristic during pull back. The momentum indicator KST is still trading with a negative bias in weekly chart.���