Chana extended gains on bargain hunting driven by improvement in spot demand and recovery in other agriculture commodities. The contract had fallen over 23 percent since hitting a high of 2,944 rupees on Nov. 26 on fears of government intervention to curb food inflation, ample carry-forward stocks and correction in kharif pulses. In the Delhi spot market, price rose by 33 rupees to 2,264.75 rupees on improvement in demand. Chana gained Rs 30 and settled at Rs 2226 per quintal. The volume was noted at 57350 lots. Support for chana is at 2203 below that could see a test of 2180. Resistance is now seen at 2245 above that could see a resistance of 2264.

Trading Ideas:

Chana trading range is 2180-2260.

Chana extended gains on bargain hunting driven by improvement in spot demand

Resistance for the chana is at 2245 and support is at 2203 level.

In the Delhi spot market price rose by 33 rupees to 2,264.75 rupees per 100 kg

BUY CHANA FEB ABV 2232 SL 2215 TGT 2256-2270-2288.NCDEX (LOW QTY)

Yesterday we have seen that open interest has fell by 5040 lots and volume rose by 19700.