Chana gained Rs 42 and settled at Rs 3534 per quintal tracking a pick-up in spot demand after a recent fall in prices, but hopes of a higher output and new season supplies capped the gains. Arrivals from the new season crop have started from Andhra Pradesh, Karnataka and Maharashtra, while supplies from other destinations are expected in the coming days. Millers were little active today at these prices but any sharp gains are unlikely because production estimates are high and fresh supplies have also started arriving in the markets. The first advance estimates by the farm ministry show the output of kharif, or summer-sown pulses, could fall to 5.26 million tonnes from 6.16 million tonnes a year earlier. The Chana arrivals in Delhi are stable. The total arrivals in Lawrence Road mandi were 40 trucks, similar to yesterday. Kabuli Chana arrivals are increasing and the old stocks are quite sufficient. The movement in dal market is flat. Expectations of better production this rabi season, higher imports and season arrivals from Southern parts of India has kept prices depressed in recent days. Total pulses acreage stood at 140.87 lakh ha, up by 0.4% y-o-y. As on 4th Jan 2013, pulses acreage was down by 0.4%. In Delhi spot market, chana fell down by -17.2 rupee to end at 3900 rupee per 100 kgs. The volume was noted at 34710 lots. Support for chana is at 3503 below that could see a test of 3472. Resistance is now seen at 3550 above that could see a resistance of 3566.

Trading Ideas:

Chana  trading range for the day is 3472-3566.

Chana edged up tracking a pick-up in spot demand but hopes of a higher output and new season supplies capped the gains.

Expectations of better production, higher imports and season arrivals from Southern parts of India has kept prices depressed.

NCDEX accredited warehouses chana stocks gained by 569 tonnes to 14774 tonnes.

In Delhi spot market, chana fell down by -17.2 rupee to end at 3900 rupee per 100 kgs.