Chana settled down -3.27% at 2809 after government raided on hoarders in Delhi and increasing warehouse stocks. However concerns about production of summer-sown pulses limited the downside. Raids by Food department of Delhi Government in the go-downs of food grains traders created panic in the market, though prices of all food grains are ruling low.

Chana arrivals were steady at 20 trucks as compared to previous day. Stockiest are entering in the market on ideas that these are very attractive levels given the supply squeeze seen in the markets every year around late December till mid February. Moreover, weak rainfall so far in the major chana growing states such as Rajasthan and Madhya Pradesh will discourage fresh sowing in the current year. As per the second advance estimates of Indian government, the total chana production in 2013-14 is estimated at 9.76 million tonnes against 8.83 million tonnes due to higher sowing acreage coupled with favouable crop conditions in major producing states.

The spot market cues suggests that higher supplies of around 50-40-45 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. In Delhi spot market, chana dropped by -75.05 rupee to end at 2720.85 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 10.27% to settled at 142350 while prices down -95 rupee, now Chana is getting support at 2775 and below same could see a test of 2741 level, And resistance is now likely to be seen at 2864, a move above could see prices testing 2919.

Chana trading range for the day is 2741-2919.

Chana prices ended with losses after government raided on hoarders in Delhi and increasing warehouse stocks.

However concerns about production of summer-sown pulses limited the downside.

NCDEX accredited warehouses chana stocks gained by 699 tonnes to 123112 tonnes.

In Delhi spot market, chana dropped by -75.05 rupee to end at 2720.85 rupee per 100 kgs.

SELL CHANA AUG @ 2840 SL 2880 TGT 2790-2760.NCDEX