Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 22 July 2014

Chana Chana settled down -0.07% at 2888 as pressure seen due to ample supplies and weak demand. Domestic demand for chana is very strong on festivals and also rainy season starts demand for leafy vegetables declines. However, sharp rise in chana prices may be capped on improved weather condition will not hamper rabi sowing. However, sharp rise in chana prices may be capped on improved weather condition will not hamper rabi sowing also limiting upside. Chana arrivals steady at 20-25 trucks where as it usually around 40-45 trucks a day. Southwest monsoon has revived and likely to remain active over most parts of the country for the next 10 days, which may boot kharif sowing operations further. Kharif sowing operations are in full swing in Maharashtra, Madhya Pradesh and Gujarat with the revival of rains and fears of drought are receding. 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. The latest kharif data suggested that kharif pulses sowing has been completed in 7.50 lakh hectares as on 4 July 2014, down 59% from the last year in the same period. Pulses acreage fell to 1.34 million hectare until July 11 from 4.31 million hectare a year ago, showed government data. In Delhi spot market, chana gained by 26.25 rupee to end at 2876.25 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 1.52% to settled at 161510 while prices down -2 rupee, now Chana is getting support at 2871 and below same could see a test of 2859 level, And resistance is now likely to be seen at 2906, a move above could see prices testing 2929.