Chana settled down -0.3% at 3003 as pressure seen due to reports of a better crop in the country, large carryover stock of domestic chana and availability of imported chana. Besides, arrival of new chana in local mandis, albeit sparingly, also have added to the bearish sentiment. Sowing operations are progressing in major growing states such as Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka. Chana sowing rose to 10.13 million hectares till Jan 31 compared to 9.34 million hectares a year earlier, government data showed. Pulses sowing rose to 15.67 million hectares as on Jan 31 compared to 14.9 million hectares a year earlier, data released by the government showed. Chana carry forward stock in exchange surged to 910 tons in January compared to no carry forward stock a month earlier. There are crop damage concerns due to cold conditions as well as yield concerns in the major producing states state. Prices are ruling well below their MSP levels and thus demand is expected to emerge at lower levels. Sowing of Chana in MP, Rajasthan, and Maharashtra, is reported higher at 3.48 mn ha, 1.75 mn ha and 1.74 mn ha respectively while sowing in Karnataka is lower at 1.01 mn ha as on now compared to the corresponding period in the previous year. In Delhi spot market, chana dropped by -0.85 rupee to end at 2837.5 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.52% to settled at 74450 while prices down -9 rupee, now Chana is getting support at 2988 and below same could see a test of 2972 level, And resistance is now likely to be seen at 3023, a move above could see prices testing 3042.

Trading Ideas:

Chana trading range for the day is 2973-3043.

Chana ended with losses as pressure seen due to reports of a better crop in the country and large carryover stock.

Besides, arrival of new chana in local mandis, albeit sparingly, also have added to the bearish sentiment.

NCDEX accredited warehouses chana stocks gained by 51 tonnes to 12608 tonnes.

In Delhi spot market, chana dropped by -0.85 rupee to end at 2837.5 rupee per 100 kgs.