Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 2 August 2013

Chana Chana yesterday settled up 1.72% at 2721 due to buying interest at lower prices and firm cues from the local market because of the festive season, though higher area under summer-sown pulses cultivation limited the upside. Prices should now bounce back from here. Stockists have started buying on hopes of improved festive demand. As per market sources, steady arrivals of imported chana at Mumbai port prompted strong selling in domestic market. The spot prices of Australia Chana shrugged off by almost Rs 300 per quintal in the last week. This is mainly due to strong chana production estimates in Australia. On the demand side, fragile demand of chana by millers due to sturdy kharif pulses sowing and possibility of weak demand during the festival season of August- October period will encourage further selling in both spot and futures market. As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses is reported at 73.62 lakh hectares, up almost 86% from the last year. This is mainly due to strong sowing of Tur and Urad in Maharashtra. As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses is are reported at 25.96 lakh hectares, up almost 99% from the last year. This is mainly due to strong sowing of Tur and Urad in Maharashtra. Therefore, gains in kharif sowing acreage prompted sharp decline in chana demand in physical mandies. In Delhi spot market, chana gained by 32 rupee to end at 2816.7 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.66% to settled at 116990 while prices up 46 rupee, now Chana is getting support at 2661 and below same could see a test of 2600 level, And resistance is now likely to be seen at 2771, a move above could see prices testing 2820.