Chana settled up 1.08% at 3095 as concerns about the output in Madhya Pradesh supported the prices though sufficient stocks, higher area under cultivation and prospects of better crop limited upside. The area under cultivation has increased but there are some concerns (about the crop) in Madhya Pradesh. According to reports, with farmers switching over to other cash-rich crops on account of poor returns, the area under chana crop is expected to fall sharply this year. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana has been reported at 86.92 lakh hectares against 83.57 lakh hectares in the last year in same period. Sources mentioned that the total production of chana in the current year is likely to be around 75-76 lakh tonnes, up 4-5 lakh tonnes from the last year due to favourable monsoon rainfall and comfortable sowing conditions in major producing states. India's total production of pulses is estimated at 18.45 million tons during 2012-13. In addition, Government of India has imported 3.83 million tons of pulses during 2012-13 to fulfil the requirement of the country, the data from the Ministry of Agriculture showed. In Delhi spot market, chana dropped by -8.95 rupee to end at 2930.35 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -4% to settled at 48690 while prices up 33 rupee, now Chana is getting support at 3060 and below same could see a test of 3025 level, And resistance is now likely to be seen at 3116, a move above could see prices testing 3137.

CHANA

Chana trading range for the day is 3025-3137.

Chana settled up as concerns about the output in Madhya Pradesh supported the prices

With farmers switching over to other cash-rich crops on account of poor returns, the area under chana crop is expected to fall sharply this year

Sources mentioned that the total production of chana in the current year is likely to be around 75-76 lakh tonnes

In Delhi spot market, chana dropped by -3.55 rupee to end at 2950 rupee per 100 kgs.

BUY CHANA FEB @ 3070 SL 3030 TGT 3110-3156.NCDEX