Chana gained Rs 93 and settled at Rs 4819 per quintal as a thin supply situation in the domestic market and improved local buying ahead of the festive season supported sentiment. Slow progress of summer-sown pulses due to less rainfall also supported the upside. Chana is a winter crop sown from October to December. Demand is expected to remain good ahead of the festive season. Demand for chana usually rises during the rainy season due to less availability of fresh vegetables and the festive season that begins in August. Government released fourth advance estimates wherein it revised upward Chana output at 7.58 mn tn from 7.4 mn tonnes estimated in the third advance estimates and 8.22 mn tn in 2010-11. However, improved rains failed to narrow the gap in Kharif pulses sowing. This is because in the major pulses growing regions rains have been deficient. Around 36 percent of the total Pulses in India are grown in the Kharif season. Thus area under Kharif Pulses, which was up by 5.3% as on 5th July, is now down by 37% as on 12th July, 2012. Although Chana is a Rabi crop, it also takes cues from monsoon and sowing progress of Kharif crops. The total sowing acreage kharif pulses on 13th July 2012 was reported at 32.83 lakh hectares against 20.54 lakh hectares in the last year. This was mainly due to sluggish sowing progress in Rajasthan, Gujarat and Andhra Pradesh. Moreover, receding daily arrivals in major mandies also added some gains in domestic market. In Delhi spot market, chana jump up by 52.3 rupee to end at 4865.65 rupee per 100 kgs. The volume was noted at 114530 lots. Support for chana is at 4770 below that could see a test of
4720. Resistance is now seen at 4846 above that could see a resistance of 4872.
Chana trading range for the day is 4720-4872.
Chana ended up as a thin supply situation in the domestic market and improved local buying
Slow progress of summer-sown pulses due to less rainfall also supported the upside.
NCDEX accredited warehouses chana stocks dropped by 1688 tonnes to 81876 tonnes.
In Delhi spot market, chana jump up by 52.3 rupee to end at 4865.65 rupee per 100 kgs.
BUY CHANA AUG @ 4740-4762 SL 4710 TGT 4790-4820. NCDEX (BTST)