Chana gained Rs 118 and settled at Rs 4278 per quintal as traders chose to buy at lower levels, supported by thin supplies in the festive season. However, expectation of increased sowing of the crop is expected to weigh on sentiment at higher prices. As per the first advance estimates, kharif pulses output is estimated at 5.26 million tonnes compared with 6.16 million tonnes last year. Besides, reports of higher output in Australia, the largest supplier of chickpeas to India, also led to the fall in prices. The revival of the monsoon, especially in Rajasthan, which is a major chana growing State, has brightened prospects for this rabi crop. As per the latest release from Australia Bureau of Statistics (ABARE), the total Australian chana in the current year 2012-13 is estimated at 8.27 lakh tonnes , up almost 3.42 lakh tonnes from the last year. According to the first advance estimates, kharif pulses output is estimated lower by 14.6% at 5.26 million tonnes compared with 6.16 mn tn last year. Kharif pulses harvesting would commence from next month. The total daily arrivals were hovering at the levels of around 30000 bags in the entire major mandies, unchanged from the last day. Chana production in Canada may surge to 1.05 lakh tones in 2012-13 as compared to 0.91 lakh tones in previous year. In Delhi spot market, chana jump up by 67.15 rupee to end at 4370.3 rupee per 100 kgs. The volume was noted at 97330 lots. Support for chana is at 4167 below that could see a test of 4055. Resistance is now seen at 4349 above that could see a resistance of 4419.

Trading Ideas:

Chana trading range for the day is 4055-4419.

Chana ended higher as traders chose to buy at lower levels, supported by thin supplies in the festive season.

Expectation of increased sowing of the crop is expected to weigh on sentiment at higher prices.

NCDEX accredited warehouses chana stocks dropped by 338 tonnes to 46397 tonnes.

In Delhi spot market, chana jump up by 67.15 rupee to end at 4370.3 rupee per 100 kgs.