Chana gained Rs 37 and settled at Rs 3347 per quintal on value buying triggered by some improvement in the domestic demand, though rising spot supplies and expectations of higher output restricted the upside. Domestic demand for the upcoming holi festival is expected to gain momentum next week onwards which could limit any major downside in price. Supplies from the new crop have started arriving in Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh, and are likely to rise further. Chana output in Madhya Pradesh this year is expected to be around 16 lakh tonnes against 82-83 lakh tonnes. Arrival of chana in local mandis was reported to be around 3,000-3,500 bags. However, traders anticipate some pick up in demand ahead of the Festive season later this month. This could support the falling rates to some extent. Higher production prospects and high crop arrivals in the mandis however may prevent significant uptrend. Firmness in Tur and Urad could also support Chana rates to some extent. Rabi acreage under pulses has increased, as farmers in Madhya Pradesh and Maharashtra have planted more area under gram or chana. The acreage under chana is up 5 per cent at 91.68 lakh hectares (lh) against 86.99 lh in corresponding period last year. In Delhi spot market, chana jump up by 23.9 rupee to end at 3434.6 rupee per 100 kgs. The volume was noted at 56440 lots. Support for chana is at 3309 below that could see a test of 3271. Resistance is now seen at 3372 above that could see a resistance of 3397.

Trading Ideas:

Chana  trading range for the day is 3271-3397.

Chana gained on value buying triggered by some improvement in the domestic demand

Domestic demand for the upcoming Holi festival is expected to gain momentum next week onwards.

Supplies from the new crop have started arriving in Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh

In Delhi spot market, chana jump up by 23.9 rupee to end at 3434.6 rupee per 100 kgs.