Chana dropped Rs 128 and settled at Rs 4495 per quintal tracking dull cues from the spot market where demand was poor from retailers and millers, while fears of government curbs weighed on sentiment. New Delhi will decide next week whether to ban futures trading in selected farm commodities that have seen extreme price moves, government sources said. Selling pressure is seen in chana futures because of fears of government intervention. Sowing of summer-sown pulses is lagging due to deficit rains. Chana is a winter crop sown from October to December. India's crucial monsoon rains are now expected to be below average, the government said, turning to contingency plans as rainfall has been about 22% below normal and recent rains were not enough to ease concerns. According to the Ministry of Agriculture 62.99 Lakh hectare area has been planted under Kharif pulses as on 27th July, 2012 compared to 79.82 lakh hectare (ha) same period last year, a decline of almost 21.08% . Sowing is reported lower mainly in Rajasthan. Rajasthan Agriculture Department states that planted area under Kharif Pulses is down at 8.11 lakh hectares ha compared to 17.17 lakh ha same period last year. However, in AP and Maharashtra, Kharif sowing is up by 5% and 0.2% at 3.96 lakh hectares and 16.98 lakh hectares. In Delhi spot market, chana jump up by 25.9 rupee to end at 4731.25 rupee per 100 kgs. The volume was noted at 98100 lots. Support for chana is at 4436 below that could see a test of 4378. Resistance is now seen at 4607 above that could see a resistance of 4720.

Trading Ideas:

Chana trading range for the day is 4378-4720.

Chana fell tracking dull cues from the spot market where demand was poor from retailers and millers

Selling pressure is seen in chana futures because of fears of government intervention.

NCDEX accredited warehouses chana stocks dropped by 589 tonnes to 75546 tonnes.

In Delhi spot market, chana jump up by 25.9 rupee to end at 4731.25 rupee per 100 kgs.