Chana dropped Rs 13 and settled at Rs 3142 per quintal on the back of profit booking however the downside was limited due to thin stocks, expectation of good demand in the forthcoming festivals and an increase in prices of other pulses. Demand for chana is very good and is expected to further grow during Ramadan. However low arrivals and expected rise in Festive demand in coming days could support the prices at the lower levels. The latest Govt estimates put Pulses production at 18.09 million tonnes in 2010-11 vs 14.66 million tonnes the previous year thus raising production estimates by ~23%.With Monsoon picking up in Pulses growing states of MP, AP and Maharashtra, the overall production can be expected to remain high.The total daily arrivals of chana were hovering at higher levels of around 0.80 lakh bags in the entire major mandies. In Delhi spot market, chana jump up by 6.5 rupee to end at 3032.5 rupee per 100 kgs. The volume was noted at 178060 lots. Support for chana is at 3128 below that could see a test of 3115. Resistance is now seen at 3162 above that could see a resistance of 3183.

Trading Ideas:

Chana trading range is 3115-3183.

Chana dropped on the back of profit booking however the downside was limited due to thin stocks

Demand for chana is very good and is expected to further grow during Ramadan

NCDEX accredited warehouses chana stocks gained by 631 tonnes to 159376 tonnes.

In Delhi spot market, chana jump up by 6.5 rupee to end at 3032.5 rupee per 100 kgs.