Chana gained Rs 39 and settled at Rs 3459 per quintal due to a pick-up in local buying in the wedding season, though estimates of record high output and new season supplies restricted the upside. Supplies from the new season crop are coming in from the states of Rajasthan, Maharashtra and Madhya Pradesh. However, traders expect these to slow down as the peak season is about to end. Some value buying is seen in chana futures but in the medium term prices could fall because production estimates are high. Chana output is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate as against 7.70 million tonnes a year earlier. There are some concerns over the yield and quality of the crop in Madhya Pradesh, the top chana producer in India, after unseasonal rainfall in February. Chana arrivals in Delhi continue to be very thin and prices continue to take support at lower levels. The supplies in the city had dropped quite drastically in the last week, as farmers did not show an active enthusiasm in bringing their produce to the mandies. The wedding season also took a toll on the market activity. However, the overall supply condition remains good this year. The supplies in Delhi totaled 25 trucks compared to 20 trucks yesterday. In Delhi spot market, chana jump up by 32.75 rupee to end at 3416 rupee per 100 kgs. The volume was noted at 61240 lots. Support for chana is at 3436 below that could see a test of 3413. Resistance is now seen at 3471 above that could see a resistance of 3483.

Trading Ideas:

Chana  trading range for the day is 3413-3483.

Chana rose due to a pick-up in local buying in the wedding season, though estimates of record high output restricted the upside.

Supplies from the new season crop are coming in from the states of Rajasthan, Maharashtra and Madhya Pradesh.

NCDEX accredited warehouses chana stocks gained by 3437 tonnes to 89490 tonnes.

In Delhi spot market, chana jump up by 32.75 rupee to end at 3416 rupee per 100 kgs.