Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 29 July 2013

Chana Chana yesterday settled down -0.66% at 2691 due to sluggish domestic demand, higher area under summer-sown pulses and favourable weather. There is little scope for price to fall from the current level. Already spot prices are trading below minimum support price set by the government. The NCDEX has decided to levy special margin of 5 percent on short positions of chana from July 27. 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. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. Some talk is emerging about moong crop in Karnataka getting affected. Market data suggested that favourable rainfall in the major chana producing states such as Maharashtra and Madhya Pradesh will facilitate the better sowing conditions for chana crop in the current year. Moreover, strong chana liquidation by stockiest due to some quality concerns might also lead to some selling pressure in futures market. Healthy arrivals in Delhi market this week are also affecting sentiments and spot prices continue to linger around their two-year lows. The arrivals in Delhi's Lawrence Road mandi are 30 trucks but have witnessed a sizable flow of supplies in the week. The total output of Chana is likely to be 8.57 million tonnes in the current year. In Delhi spot market, chana gained by 63 rupee to end at 2850 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.08% to settled at 129540 while prices down -18 rupee, now Chana is getting support at 2671 and below same could see a test of 2650 level, And resistance is now likely to be seen at 2721, a move above could see prices testing 2750.