Chana dropped Rs 23 and settled at Rs 2526 per quintal on hopes of higher output on rising acreage, though firm domestic demand kept the downside limited. Total acreage in 2010/11 is likely to rise by 15-20 percent due to abundant soil moisture and higher government support price, which is encouraging farmers to increase area under cultivation. In Indore, a major trading centre in Madhya Pradesh state, chana rose 20 rupees to be at 2,387.50 rupees per 100 kg. The total arrivals of chana were around 70 motors reported. In Delhi spot market, chana jump up by 5.25 rupee to end at 2470 rupee per 100 kgs. The volume was noted at 49020 lots. Support for chana is at 2514 below that could see a test of 2503. Resistance is now seen at 2546 above that could see a resistance of 2567.

Trading Ideas:

Chana trading range is 2504-2568.

Chana settled weak on hopes of higher output on rising acreage

Chana is taking resistance at 2546 and support is seen at 2514.

NCDEX accredited warehouses chana stocks fell 8648 tonnes to 17221 tonnes.

In Delhi spot market, chana jump up by 5.25 rupee to end at 2470 rupee per 100 kgs.