Chana yesterday settled up 2.64% at 2990 on an expected rise in spot demand though ample supplies and a likely rise in production of summer-sown pulses kept the upside limited. There is good demand from stockists ahead of festivals. Retail demand for chana flour is likely to pick up in the coming days, ahead of festivals such as Rakshabandhan and Ganesh Chaturthi. Festive season demand however picked up at the lower levels as markets bounced back by the end of the day. The arrivals in Delhi market totaled 25 trucks and if the trend is not seen improving in the next few days, then it will be an indication that the stockists are running out of supplies. The progress on the kharif pulses harvest front is impressive. As per latest release from Ministry of Agriculture, the acreage under pulses has shot up by 26.21% to 79.5 lakh hectares. This is mainly due to strong sowing of Tur and Urad in Maharashtra. 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. The area sown under pulses for 2013-14 kharif crop touched 79.50 lakh hectares (lh) higher when compared to 62.99 lh during the same period last year, as per the data released by the Ministry of Agricultures. In Delhi spot market, chana gained by 8 rupee to end at 3057.9 rupee per 100 kgs. Now Chana is getting support at 2910 and below same could see a test of 2829 level, And resistance is now likely to be seen at 3036, a move above could see prices testing 3081.

Trading Ideas:

Chana trading range for the day is 2830-3082.

Chana ended with gains on an expected rise in spot demand though ample supplies and a likely rise in production kept upside limited

There is good demand from stockists ahead of festivals and retail demand for chana flour is likely to pick up in the coming days.

NCDEX accredited warehouses chana stocks dropped by 2149 tonnes to 128231 tonnes.

In Delhi spot market, chana gained by 7.9 rupee to end at 3057.9 rupee per 100 kgs.