Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 9 January 2014

Chana Chana settled up 0.16% at 3061 on short covering after prices dropped due to weak spot demand, higher carryforward stocks and prospects of higher production. The spot market data suggested that daily fresh arrivals of 1000-1200 bags of new chana have been reported in the major mandies of Andhra Pradesh with the price range of Rs 2950-3100 per quintal, while fresh arrivals of around 500-800 bags of chana have been reported in the major mandies of Karnataka with the price range of Rs 2900-3000 per quintal. The market sources added that strong supplies of inferior quality of chana in the major mandies of Madhya Pradesh also fueled negative sentiments in local mandies. The inferior quality of chana has been trading in the range of Rs 2300-2500 per quintal in mandies like Ashok Nagar and Piperia of Madhya Pradesh. The prices also pressurized by higher sowing progress of new chana crop so far in the current year. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana has been reported at 95.30 lakh hectares against 90.03 lakh hectares in the last year in same period. Contrary to expectations, buying ahead of the Makar Sankranti this month has been comparatively weak unlike the previous year, leading to vertical fall in prices over the last few days. In Delhi spot market, chana dropped by -3.4 rupee to end at 2910.9 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 4.01% to settled at 70340 while prices up 5 rupee, now Chana is getting support at 3044 and below same could see a test of 3026 level, And resistance is now likely to be seen at 3076, a move above could see prices testing 3090.