Chana settled up 1.54% at 2901 on the back of surging demand in spot markets against restricted arrivals from the major producing belts. Though, sowing prospects for the summer crop improved with the arrival of monsoon rains over the Kerala coast, limiting the gains in chana prices to some extent. The spot market cues suggests that higher supplies of around 30-40 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. Prices are trading at the level which is way below the MSP of chana as fixed by the government. 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 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. Most of the chana processing companies prefer inferior quality of chana over average quality. Chana prices are ruling below MSP of Rs 3,100 per 100 kilogram in many markets of producing states on reports of record output. In Delhi spot market, chana gained by 50 rupee to end at 2800 rupee per 100 kgs. In Delhi spot market, chana gained  by 25 rupee to end at 2825 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.05% to settled at 172100 while prices up 44 rupee, now Chana is getting support at 2867 and below same could see a test of 2830 level, And resistance is now likely to be seen at 2925, a move above could see prices testing 2946.

Trading Ideas:

Chana trading range for the day is 2829-2945.

Chana ended with gains on the back of surging demand in spot markets against restricted arrivals from the major producing belts.

Though, sowing prospects for the summer crop improved with the arrival of monsoon rains over the Kerala coast, limiting the gains.

Chana prices are ruling below MSP of Rs 3,100 per 100 kilogram in many markets of producing states on reports of record output.

In Delhi spot market, chana gained  by 25 rupee to end at 2825 rupee per 100 kgs.