Chana settled up 1.48% at 2885 helped by bargain-buying, though ample supplies and weak demand kept the upside limited. Chana arrival at 15 trucks where as it is usually around 40-45 trucks per day. Domestic demand for chana is very strong on upcoming festivals and also rainy season starts demand for leafy vegetables declines. Prices also be supported on weak southwest monsoon this year which may hamper rabi sowing prospects. Weak rains are already hampering kharif crop planting and there are chances it may affect rabi sowing.

India's southwest monsoon, which accounts for 80% of the country's rainfall, is likely to be deficient this year, the Indian Metrological Department (IMD) said in its revised forecast amid possibility of El Nino. India's 65% agriculture is rain-fed. 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 record output at 9.79 million ton up from 8.83 million ton a year ago, which could revised downwards.

It is expected that Maharashtra will procure 20,000 tons, Haryana government 70,000 tons and Rajasthan to procure 200,000 tons of chana in the current marketing season at MSP levels. In Delhi spot market, chana gained by 65.4 rupee to end at 2865.4 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.35% to settled at 159800 while prices up 42 rupee, now Chana is getting support at 2852 and below same could see a test of 2826 level, And resistance is now likely to be seen at 2899, a move above could see prices testing 2920.

Trading Ideas:

Chana trading range for the day is 2829-2923.

Chana ended higher helped by bargain-buying, though ample supplies and weak demand kept the upside limited.

Domestic demand for chana is very strong on upcoming festivals and also rainy season starts demand for leafy vegetables declines.

NCDEX accredited warehouses chana stocks dropped by 240 tonnes to 123560 tonnes.

In Delhi spot market, chana gained by 65.4 rupee to end at 2865.4 rupee per 100 kgs.