Chana settled down -0.23% at 2989 on weak demand from bulk consumers amid anticipation of higher supplies in domestic market due to robust sowing. Demand is expected to rise for marriage activities in summer season. However, robust arrivals in mandis after higher sowing will affect the prices of chana. Sowing has almost ended and is much higher than the previous year. 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 sowing rose to 10.13 million hectares till Jan 31 compared to 9.34 million hectares a year earlier, government data showed. Traders expect more corrections in prices as domestic demand is not expected to pick up strongly in absence of Festivals in the near term. Moreover, higher sowing acreage in major producing states added selling in chana market. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana as on 31st January 2014 has been reported at 103.3 lakh hectares, up 8% from the previous year. 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. In Delhi spot market, chana dropped by -13.35 rupee to end at 2825 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.55% to settled at 80400 while prices down -7 rupee, now Chana is getting support at 2977 and below same could see a test of 2965 level, And resistance is now likely to be seen at 3000, a move above could see prices testing 3011.

Trading Ideas:

Chana trading range for the day is 2965-3011.

Chana dropped on weak demand from bulk consumers amid anticipation of higher supplies in domestic market due to robust sowing.

However, robust arrivals in mandis after higher sowing will affect the prices of chana.

NCDEX accredited warehouses chana stocks gained by 134 tonnes to 12766 tonnes.

In Delhi spot market, chana dropped by -13.35 rupee to end at 2825 rupee per 100 kgs.