Chana settled up 0.13% at 3118 on expectations of a rise in demand due to wedding season. Prices have been under pressure amid good sowing progress in rabi season and thin trading activity owing to quality issues. However, stockists are entering in the market on ideas that these are very attractive levels given the supply squeeze seen in the markets every year around late December till mid-February. The arrivals in Delhi were 35 trucks and there is steady demand in ready daal market. The seasonally weak supplies period is about to start and further gains could be seen in the prices in coming days. After a good start to the sowing, the acreage under pulses is stabilizing now. The area under pulses has gone up to 138.08 lakh hectares this season from 133.04 lakh hectares last year- up 3.80% on the year. The total output of Chana is likely to have hit 8.57 million tonnes in the last season. This marks a gain of 11.29% compared to the last year's production of 7.57 million tonnes. 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. In Delhi spot market, chana dropped by -8.4 rupee to end at 2928.15 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 2.92% to settled at 61640 while prices up 4 rupee, now Chana is getting support at 3095 and below same could see a test of 3073 level, And resistance is now likely to be seen at 3137, a move above could see prices testing 3157.

Trading Ideas:

Chana trading range for the day is 3074-3158.

Chana settled up on expectations of a rise in demand due to wedding season.

Prices have been under pressure amid good sowing progress in rabi season and thin trading activity owing to quality issues.

NCDEX accredited warehouses chana stocks gained by 221 tonnes to 12630 tonnes.

In Delhi spot market, chana dropped by -8.4 rupee to end at 2928.15 rupee per 100 kgs.