Chana dropped Rs 19 and settled at Rs 3381 per quintal on profit booking after prices gained helped by an improvement in demand in the physical market and lower arrivals from the new crop as peak season nears its end. Chana arrivals in Delhi continued to be very thin and prices continued 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. However, the overall supply condition remains good this year. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 million tonnes. Chana arrivals again stayed modest in Delhi. The average daily supplies were around 25-30 trucks during last week as weak prices took their toll and are showing a similar pattern this week too as farmers are not showing an active enthusiasm in bringing their produce to the mandies. The wedding season also ensured less participation. The spot prices have mostly trended up after tanking near their 15 month low of Rs 3330 last week though on a year ago basis, the commodity is down around 20%. The arrivals in Delhi's Lawrence Road mandi were 30 trucks as compared to 40 trucks yesterday. In Delhi spot market, chana jump up by 3.3 rupee to end at 3387.25 rupee per 100 kgs. The volume was noted at 60890 lots. Support for chana is at 3353 below that could see a test of 3326. Resistance is now seen at 3415 above that could see a resistance of 3450.

Trading Ideas:

Chana  trading range for the day is 3326-3450.

Chana dropped on profit booking after prices gained helped by an improvement in demand in the physical market.

Chana arrivals in Delhi continued to be very thin and prices continued to take support at lower levels.

NCDEX accredited warehouses chana stocks gained by 261 tonnes to 108281 tonnes.

In Delhi spot market, chana jump up by 3.3 rupee to end at 3387.25 rupee per 100 kgs.