Chana settled up 0.53% at 3024 on short covering despite prices dropped in spot market on estimates of higher production due to expanded area under cultivation and conducive weather, with higher carry-forward stocks also weighing on sentiment. India is likely to harvest 9.79 million tonnes of chickpeas in 2014 as compared with 8.88 million tonnes a year earlier. Pulses sowing rose to 16.2 million hectares as on Feb 7 compared to 15.26 million hectares a year earlier, data released by the government showed. Chana sowing rose to 10.21 million hectares till Feb 7 compared to 9.5 million hectares a year earlier, government data showed. India's gram output is seen rising to 9.79 million tons in 2013-14 the government said in its second advance estimate for agricultural crop Friday. Robust arrivals in mandis after higher sowing are affecting the prices of chana as buyers are waiting for prices to stabilize. Anticipation of higher arrivals are pressurising the prices which is also hampering the demand. Pulses sowing rose to 16.2 million hectares as on Feb 7 compared to 15.26 million hectares a year earlier, data released by the government showed. Chana sowing rose to 10.21 million hectares till Feb 7 compared to 9.5 million hectares a year earlier, government data showed. In Delhi spot market, chana dropped  by -60.7 rupee to end at 2900 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.35% to settled at 87660 while prices up 16 rupee, now Chana is getting support at 2994 and below same could see a test of 2964 level, And resistance is now likely to be seen at 3042, a move above could see prices testing 3060.

Trading Ideas:

Chana trading range for the day is 2964-3060.

Chana gained on short covering despite prices dropped in spot market on estimates of higher production.

India is likely to harvest 9.79 million tonnes of chickpeas in 2014 as compared with 8.88 million tonnes a year earlier.

Chana sowing rose to 10.21 million hectares compared to 9.5 million hectares a year earlier, government data showed.

In Delhi spot market, chana dropped  by -60.7 rupee to end at 2900 rupee per 100 kgs.