Chana gained Rs 157 and settled at Rs 4793 per quintal on improved festive season demand after prices fell in September on improved rains and expected higher output in Australia, the largest supplier of chickpeas to India. According to the Ministry of Agriculture 99.81 Lakh hectare area has been planted under Kharif pulses as on 21th September, 2012 compared to 108.28 lakh hectare (ha) same period last year. According to the first advance estimates of 2012-13 season, 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. Strapping millers offtake ahead of festival demand spurred strong gains in both spot and futures market. Most of the millers of North India have witnessed active buying interest in local mandies. Moreover, poor moisture content in some parts of the chana growing states also added speculative demand in local mandies. Sentiment is firm due to festival buying in the spot market. Lower output estimates for the kharif pulses are also aiding the upside in pulses. Initial advance estimates show the kharif pulses output at 5.26 million tonnes compared with 6.16 million tonnes a year earlier. In Delhi spot market, chana jump up by 140.6 rupee to end at 4700 rupee per 100 kgs. The volume was noted at 138370 lots. Support for chana is at 4684 below that could see a test of 4574. Resistance is now seen at 4861 above that could see a resistance of 4928.

Trading Ideas:

Chana trading range for the day is 4574-4928.

Chana ended higher on improved festive season demand after prices fell in September on improved rains

Strapping millers offtake ahead of festival demand spurred strong gains in both spot and futures market.

NCDEX accredited warehouses chana stocks gained by 308 tonnes to 46319 tonnes.

In Delhi spot market, chana jump up by 140.6 rupee to end at 4700 rupee per 100 kgs.