Chana settled down -2.03% at 2900 as the monsoon improved in rainfed areas of western India where the crop is grown.  Chana arrivals fell by 5 trucks to 30 trucks as compared to previous day. Domestic demand for the pea is weak in local mandis as quality available in market is of inferior variety as there is some moisture content in chickpea. 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. Chana prices also eased on hopes of some gains in the kharif pulses acreage. Recent reports suggest that area under Moong and Urad has witnessed a good pick up in last one week. Mild selling weakness has emerged in the commodity after prices hit their two month high this week but the recent firmness is ensuring that prices hold on. The arrivals in Delhi continued to be steady and traders are eyeing sowing of Kharif pulses. The total Chana arrivals stood at 40 trucks at Delhi market today. The overall demand is likely to be steady in the commodity ahead of the start of the festive season. In Delhi spot market, chana dropped  by -31.3 rupee to end at 2884.15 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 18.28% to settled at 109810 while prices down -60 rupee, now Chana is getting support at 2870 and below same could see a test of 2839 level, And resistance is now likely to be seen at 2942, a move above could see prices testing 2983.

Trading Ideas:

Chana trading range for the day is 2839-2983.

Chana prices dropped as the monsoon improved in rainfed areas of western India where the crop is grown.

Chana arrivals fell by 5 trucks to 30 trucks as compared to previous day.

NCDEX accredited warehouses chana stocks gained by 90 tonnes to 121657 tonnes.

In Delhi spot market, chana dropped  by -31.3 rupee to end at 2884.15 rupee per 100 kgs.