Chana settled down -0.7% at 3125 on sluggish demand and ample carry forward stocks. Demand is weak and carry forward stocks are higher than normal. Prices are trading below the government set minimum support level.

Farmers have planted pulses on 13.81 million hectares as compared with 13.30 million hectares in the same period a year earlier, according to the farm ministry.  As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana as on 20th December 2013 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.

The spot and futures will also be pressurized by fresh supplies from Andhra Pradesh. As per the market sources , fresh arrivals of around 4000-5000 bags of chana have been reported in the major mandies of Andhra Pradesh , while around 100-200 bags of chana have been seen in Karnataka. In Delhi spot market, chana dropped  by -13.9 rupee to end at 2950 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 7.79% to settled at 57260 while prices down -22 rupee, now Chana is getting support at 3096 and below same could see a test of 3066 level, And resistance is now likely to be seen at 3157, a move above could see prices testing 3188.

Trading Ideas:

Chana trading range for the day is 3068-3190.

Chana ended with losses on sluggish demand and ample carry forward stocks.

Demand is weak and carry forward stocks are higher than normal.

NCDEX accredited warehouses chana stocks dropped by 29 tonnes to 11838 tonnes.

In Delhi spot market, chana dropped  by -13.9 rupee to end at 2950 rupee per 100 kgs.