Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 3 February 2014

Chana Chana settled down -0.92% at 3008 on ample carry-forward stocks and sluggish demand. Farmers are trying to sell stocks as prices have fallen below the minimum support price and they fear that prices might fall further. Arrivals will further rise in coming days as fresh supplies have started coming in market and also due to robust sowing. Chana sowing rose to 10.12 million hectares till Jan 24 compared to 9.33 million hectares a year earlier, government data showed. Pulses sowing rose to 15.65 million hectares as on Jan 29 compared to 14.9 million hectares a year earlier, data released by the government showed. Chana prices are expected to rise by the end of February due to festivals like Holi and marriage activities. Better crop production reports prevented any strong upside movement. Good weather conditions in growing states, high supplies of Tur, Urad and Moong have kept market sentiments weak. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana has been reported at 102.20 lakh hectares against 92.30 lakh hectares in the last year in same period. This will increase the chana production to 74-75 lakh tonnes in the near term. The chana crop will also be well supported by favourable rainfall in northern India from the last two days. This will boost the productivity of crop. Technically market is under fresh selling as market has witnessed gain in open interest by 12.35% to settled at 69610 while prices down -28 rupee, now Chana is getting support at 2998 and below same could see a test of 2987 level, And resistance is now likely to be seen at 3028, a move above could see prices testing 3047.