Chana settled down -0.07% at 3063 on lower-than-expected local demand, large carry-forward stocks and prospects of higher production. However, concerns about yield from Madhya Pradesh state due to a cold wave restricted the downside. Fundamentals are weak in chana. Stocks are very good from the last crop and this year also crop looks quite good. Farmers had planted pulses on 14.64 million hectares, up from 14.26 million hectares in the same period a year earlier, according to the farm ministry. 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. Though the recent `mawtha' (winter rain) appears to have bolstered the prospect of the standing crop, chana output this year is set to decline to 72-75 lakh tonnes from 85 lakh tonnes last year. With robust crop output last year, chana prices throughout the year remained low compared with last year, amid demand for cheap imported dollar chana (chickpea) in local mandis. Local mandis are witnessing scattered arrival of new chana in the last few days from some parts of Madhya Pradesh. However, arrivals likely to pick up only from the second week of February. In Delhi spot market, chana gained by 4.5 rupee to end at 2915.4 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.57% to settled at 72800 while prices down -2 rupee, now Chana is getting support at 3051 and below same could see a test of 3038 level, And resistance is now likely to be seen at 3074, a move above could see prices testing 3084.

Trading Ideas:

Chana trading range for the day is 3037-3083.

Chana prices dropped on lower-than-expected local demand, large carry-forward stocks and prospects of higher production.

However, concerns about yield from Madhya Pradesh state due to a cold wave restricted the downside.

Stocks are very good from the last crop and this year also crop looks quite good.

In Delhi spot market, chana gained by 4.5 rupee to end at 2915.4 rupee per 100 kgs.