Chana gained Rs 79 and settled at Rs 4355 per quintal on value buying, supported by some fresh festive demand in the local market amid thin supplies. Lower level buying is supporting chana prices. Millers have started buying on dips due to the ongoing festive season. However, expectation of increased sowing of the crop due to revived monsoon rains 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. The price of pulses in the futures market has come down by about seven per cent in the last one month on improved rains in the main pulse-growing States. Special Margin of 10% (in cash) on the Long Side on all the running contracts and yet to be launched contracts in Chana have been withdrawn with effect from beginning of day Thursday, October 04, 2012. 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. CACP has recommended a hike in minimum support price (MSP) of gram by Rs.200 to Rs.3000 a quintal and Masoor by Rs.100 to Rs.2900 a quintal for upcoming 212-13 Rabi season to boost the production of pulses. In Delhi spot market, chana jump up by 79.7 rupee to end at 4450 rupee per 100 kgs. The volume was noted at 82140 lots. Support for chana is at 4304 below that could see a test of 4252. Resistance is now seen at 4388 above that could see a resistance of 4420.

Trading Ideas:

Chana  trading range for the day is 4252-4420.

Chana rose on value buying, supported by some fresh festive demand in the local market amid thin supplies.

Lower level buying is supporting chana prices. Millers have started buying on dips due to the ongoing festive season.

NCDEX accredited warehouses chana stocks dropped by 215 tonnes to 46182 tonnes.

In Delhi spot market, chana jump up by 79.7 rupee to end at 4450 rupee per 100 kgs.