Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 24 July 2014

Chana Chana settled down -0.53% at 2830 on low demand from millers amid steady supplies in the spot market. Waning demand and subdued activity at the spot markets are weighing on chana prices. Moderate weakness continued to persist for Chana as improved rains in Central and North-west India kept market sentiments weak for the chana prices. Domestic demand for chickpea is weak in local mandis as chana available is of inferior 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 record output at 9.79 million ton up from 8.83 million ton a year ago, which could revised downwards. Chana arrivals fell by 5 trucks to 20 trucks as compared to previous day. The latest kharif data suggested that kharif pulses sowing has been completed in 7.50 lakh hectares as on now, down 59% from the last year in the same period. This has incited the chana traders to reduce their supplies in physical mandies with the anticipation of better demand in the coming days. Southwest monsoon remained active and country received 10% above normal rains. Monsoon was active over Uttrakhand, west Uttar Pradesh, west Madhya Pradesh, Odisha, Madhya Maharashtra, Vidarbbha and south interior Karnataka. In Delhi spot market, chana gained by 6.3 rupee to end at 2843.2 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -1.49% to settled at 154440 while prices down -15 rupee, now Chana is getting support at 2815 and below same could see a test of 2796 level, And resistance is now likely to be seen at 2860, a move above could see prices testing 2886.