Chana settled flat on profit booking tracking weak spot demand after gaining on thin domestic supplies and output concerns raised by lower sowing of kharif pulses and scant rains in Rajasthan. As per latest release from Ministry of Agriculture, the total sowing acreage kharif pulses on 3rd August 2012 was reported at 74.48 lakh hectares, down 16.63% from the last year in the same period. Moreover, receding daily arrivals in major mandies also add some gains in domestic market. Traders stated that the total daily arrivals have been reduced to 15000-17000 bags against 30000-32000 bags that were reported earlier. Less rains in the pulses-cultivating regions could result in inadequate soil moisture that could impact chana sowing in October. Farmers completed sowing of kharif pulses on 7.45 million hectares by Aug. 9, down from 8.93 million hectares a year earlier. Chana is a winter crop sown from October to December. Demand for chana is firm because of festivals but comes down at higher prices. Domestic demand usually remains firm at this time of the season ahead of festivals and due to lower supply of fresh vegetables in the rainy season. The monsoon, which brings some 75 percent of India's annual rainfall, is 17 percent short of normal so far and threatening cereal and pulses production. In Delhi spot market, chana jump up by 3.05 rupee to end at 4913.9 rupee per 100 kgs. The volume was noted at 62800 lots. Support for chana is at 4850 below that could see a test of 4815. Resistance is now seen at 4904 above that could see a resistance of 4923.

Trading Ideas:

Chana  trading range for the day is 4815-4923.

Chana settled flat on profit booking tracking weak spot demand after gaining on thin domestic supplies

Receding daily arrivals in major mandies supported prices in domestic market.

NCDEX accredited warehouses chana stocks dropped by 1697 tonnes to 64008 tonnes.

In Delhi spot market, chana jump up by 3.05 rupee to end at 4913.9 rupee per 100 kgs.