N/A Seneca Dragonfly Mk2 Multi-Pump Air Rifle in .177

In general, round nose pellets will work the best. They just tend to be the most accurate. H&N field target trophy or barracudas, JSB Exacts or their FX or Air Arms clones are all excellent. FTS Dead Center seem to have a good reputation. Benjamin pellets seem to be getting good reviews as well. Crosman Premiers or Crosman Premier Hollow Points are very cheap here and can be found in most sporting goods stores.

You just need to find one that shoots accurately in your rifle and then buy as many as you can at the best price you can find.

Try to avoid pointed pellets, alloy pellets, etc... Domes and domed hollowpoints are what you want for most shooting but flat head pellets are good for close shooting or 10m paper punching. Generally I'd recommend finding one good pellet that your gun shoots well and buying a lot of them though.
 
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When you test your pellets, try pumping different numbers of times. The gun can be shot from 3 to 15 pumps. For example, if you don't need much power, shoot groups at 3 pumps, then 4, then 5. If you want a lot of power, shoot at 10 pumps, then 11, 12, etc. See if there is a number of pumps that gives the best group for that pellet.
My first gen Dragonfly (3-8 pumps max) shoots best at 6 pumps, not 5 not 7 but 6. 8 is OK too, but not as accurate as 6. I don't know why.