Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Chana Chana settled down -1.05% at 2826 as market sentiments about output prospects improved due to higher coverage despite a weak monsoon this year. Domestic demand for the pea is not strong as quality available in ware house stocks is of inferior variety as there is some moisture content in chickpea. India produced 9.88 million tons of chana up from 8.83 million ton a year ago, according to agriculture ministry's fourth advance estimates. 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. National Agricultural Cooperative Marketing Federation of India (NAFED) commenced sale of 37,500 tons of gram (chana) from its godown in various city of Rajasthan, according to the federation's website. NAFED has bought chana under price support scheme in the state as prices slumped below minimum support price (MSP) of Rs 3,100 per quintal thanks to record output in 2013-14. 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. In Delhi spot market, chana dropped by -3.8 rupee to end at 2915.3 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -4.72% to settled at 121570 while prices down -30 rupee, now Chana is getting support at 2808 and below same could see a test of 2791 level, And resistance is now likely to be seen at 2852, a move above could see prices testing 2879.