Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 12 August 2014

Chana Chana settled down -0.03% at 2924 as pressure seen on profit booking after prices were supported driven by concerns over the production of summer-sown pulses due to erratic weather. Signs of lower rainfall activities in Central India too supported the market sentiments as traders expect that with present rates being on the lower side as demand starts picking up. 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. Heavy rains for the last two days over central India brought down rain fall gap to 19% below normal until Aug 5 from 21% a day earlier boosting kharif crop sowing prospects. The market sources suggested that favourable rainfall in Madhya Pradesh, Uttar Pradesh and Rajasthan from the last two days will encourage the timely harvesting of kharif crop and also provide better conditions for chana sowing in the rabi season. However, latest data of Ministry of Agriculture stated that kharif pulses sowing declined by almost 18% so far in the current year to reach 67.19 lakh hectares due to delay monsoon in Maharashtra and Andhra Pradesh. In Delhi spot market, chana gained by 0.5 rupee to end at 2929.4 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 12.22% to settled at 169570 while prices down -1 rupee, now Chana is getting support at 2907 and below same could see a test of 2890 level, And resistance is now likely to be seen at 2942, a move above could see prices testing 2960.