Chana settled up 1.97% at 2852  tracking firmness in spot demand due to lower arrivals in domestic market. Chana arrivals in Delhi mandis fell by 3 trucks to 35 trucks compared to previous day. The spot market cues suggests that higher supplies of around 50-60 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. Moreover, fresh supplies of Moong in the major mandies of Uttar Pradesh will reduce the millers demand in local mandies. The spot and futures prices will also be discouraged by steady supplies of inferior quality of chana in Madhya Pradesh. Most of the chana processing companies prefer inferior quality of chana over average quality. 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. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 0.41% to settled at 169580, now Chana is getting support at 2821 and below same could see a test of 2776 level, And resistance is now likely to be seen at 2890, a move above could see prices testing 2914.

Trading Ideas:

Chana trading range for the day is 2771-2909.

Chana ended with gains tracking firmness in spot demand due to lower arrivals in domestic market.

Moreover, fresh supplies of Moong in the major mandies of Uttar Pradesh will reduce the millers demand in local mandies.

NCDEX accredited warehouses chana stocks gained by 50 tonnes to 119283 tonnes.

In Delhi spot market, chana remains unchanged at by 0 rupee to end at 2750 rupee per 100 kgs.