Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 26 August 2013

Chana Chana settled up 1.96% at 3127 on hopes of improvement in local demand in the festive season though expectations of higher sowing due to ample rains restricted the upside. Chickpea is a rabi crop sown during the winter and farmers depend on rains to moisten the land for sowing. Local buying is expected to gain pace in the coming days because of the upcoming festival but trading activities are slow because higher area under summer-sown pulses is weighing on the sentiment. Local demand for chana flour is likely to pick up in the coming days, ahead of Ganesh Chaturthi, a local festival. The progress on the kharif pulses harvest front is impressive. As per latest release from Ministry of Agriculture, the acreage under pulses has shot up by 26.21% to 79.5 lakh hectares. This is mainly due to strong sowing of Tur and Urad in Maharashtra. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 million tonnes. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. The traders are eying moong arrivals to start from August end from Rajasthan. However, heavy rains in Maharashtra could hurt the output of Tur and Urad. A good pick up is also being expected in demand for Masoor in coming days. In Delhi spot market, chana gained by 76 rupee to end at 3250 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -6.52% to settled at 135130 while prices up 60 rupee, now Chana is getting support at 3086 and below same could see a test of 3046 level, And resistance is now likely to be seen at 3157, a move above could see prices testing 3188.