Chana settled down by -3.98% at 4845 due to profit booking after rise in additional margin by 10% on longside with immediate effect. Pressure also seen on prices triggered by ample supplies from producing belts against easing demand at the spot market. However downside seen limited on lower output estimates of pulses which will further impact on rabi crop also. India's 2014-15 pulses output declined 11% to 17.20 million ton due to weak monsoon and adverse weather during Feb-Mar according to fourth advance estimates released by agriculture ministry. As per latest Govt reports, area under Kharif Pulses has risen to 108.37 lakh ha as on 4th Sept vs 97.56 lakh ha same period last year. Above normal rains in Central and South India have improved sowing. Import of pulses increased to fulfill domestic consumption after a fall in pulses production. India consumes around 240 lakh ton pulses annually but in 2014-15 pulses production has fallen to 173 lakh ton from 193 lakh tons in 2013-14 due to unfavorable weather indicating more import in coming months. India consumes around 240 lakh ton pulses annually but in 2014-15 pulses production has fallen to 173 lakh ton from 193 lakh tons in 2013-14 due to unfavorable weather indicating more import in coming months. In Delhi spot market, chana dropped by -68.75 rupee to end at 4981.25 rupee per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.67% to settled at 142550 while prices down -201 rupee, now Chana is getting support at 4771 and below same could see a test of 4696 level, And resistance is now likely to be seen at 4995, a move above could see prices testing 5144.

Trading Ideas:

Chana trading range for the day is 4696-5144.

Chana prices ended with losses due to profit booking after rise in additional margin by 10% on longside with immediate effect.

Pressure also seen on prices triggered by ample supplies from producing belts against easing demand at the spot market.

NCDEX accredited warehouses chana stocks dropped by 131 tonnes to 98118 tonnes.

In Delhi spot market, chana dropped by -68.75 rupee to end at 4981.25 rupee per 100 kgs.