Chana futures fell for a third straight session and is likely to continue to trade weak on rising arrivals, ample carry-forward stocks and hopes of higher output in Maharashtra and Madhya Pradesh. In Rajasthan, arrivals will soon start in March. The production of winter-sown pulses is likely to be 10.53 million tonnes in 2009/10 against 9.88 million tonnes produced a year ago, official data showed. Market wills continues to trade weak on hopes of higher output due to expanded acreage, fears of government intervention to curb food inflation and ample carry-forward stocks.

India's chana acreage as on Feb. 4 stood at 8.76 million hectares, compared with 8.3 million hectares the same period a year ago. In the Delhi spot market, price dropped 38 rupees to 2,262 rupees per 100 kg. The volume was noted at 76370 lots. Support for chana is at 2234 below that could see a test of 2221. Resistance is now seen at 2270 above that could see a resistance of 2293.

Trading Ideas:

Chana trading range is -773-3789.

Chana dipped more that 1 percent on rising arrivals, ample carry-forward stocks and hopes of higher output.

Production of winter-sown pulses is likely to be 10.53 million tonnes in 2009/10 against last year.

In the Delhi spot market, price dropped 38 rupees to 2,262 rupees per 100 kg.

SELL CHANA FEB @ 2280 SL 2308 TGT 2256-2242-2220.NCDEX

Support for chana is at 2230 and resistance is now seen at 2280.