Chana settled up 0.39% at 2799 tracking firmness in spot demand on lower arrivals in domestic market. Chana arrivals in Delhi mandis fell by 2 trucks to 38 trucks compared to previous day. Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety. Chana was sown over an area of 10.21 million hectare compared to 9.5 million hectare a year ago thanks to normal monsoon and good soil moisture. Agriculture ministry has estimated chana output at record 9.79 million ton up from 8.83 million ton a year ago. The government agencies have bought in a lot of produce at the MSP of Rs 3100 in Rajasthan. Improved Monsoon prospects kept up hopes of better sowing for Kharif Pulses to begin soon. High stocks had kept further pressure on prices even as summer season demand started picking up gradually. Government procurement has been started in Madhya Pradesh, Gujarat and Rajasthan in small quantities so far government has purchased 180 tons against the target of 2 million tons. In Delhi spot market, chana gained  by 16.55 rupee to end at 2744.55 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 14.33% to settled at 157120 while prices up 11 rupee, now Chana is getting support at 2776 and below same could see a test of 2752 level, And resistance is now likely to be seen at 2823, a move above could see prices testing 2846.

Trading Ideas:

Chana trading range for the day is 2752-2846.

Chana prices ended with gains tracking firmness in spot demand on lower arrivals in domestic market.

Chana arrivals in Delhi mandis fell by 2 trucks to 38 trucks compared to previous day.

Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety.

In Delhi spot market, chana gained  by 16.55 rupee to end at 2744.55 rupee per 100 kgs.