Chana settled up 1.07% at 3035 on reports that state government may intervene, supporting prices at lower levels while fundamental are weak on hopes of a bumper output due to higher sowing of the crop. Further, fresh arrivals in local mandies along with higher production estimates in the current year too influenced the commodity prices, though concerns about the quality and yield of the crop due to a cold wave and rains in some parts of the leading cultivating areas capped the losses to some extent. There are reports that the Maharashtra government may start procuring pulses at MSP from this week, while Rajasthan and Madhya Pradesh may start to procure from March 15. The dates are yet to be finalised. 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 1.79 mn ha respectively while sowing in Karnataka is lower at 1.01 mn ha as on 31st Jan'14 compared to the corresponding period in the previous year. In Delhi spot market, chana gained by 33.4 rupee to end at 2892.35 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 13% to settled at 92930 while prices up 32 rupee, now Chana is getting support at 2992 and below same could see a test of 2949 level, And resistance is now likely to be seen at 3077, a move above could see prices testing 3119.

Trading Ideas:

Chana trading range for the day is 2950-3120.

Chana ended gains on short covering tracking firm spot demand despite of hopes of a bumper output due to higher sowing of the crop.

The demand to rise for marriage activities in summer season but arrivals are outpacing the buying interest.

Robust arrivals in mandis after higher sowing are affecting the prices of chana as buyers are waiting for prices to stabilize.

In Delhi spot market, chana gained by 33.4 rupee to end at 2892.35 rupee per 100 kgs.