Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 1 September 2014

Chana Chana settled up 0.45% at 2920 due to short covering amid pickup in spot market demand ahead of festivals and limited supplies from the major producing belts. However upside seen limited due to production prospects improved with the monsoon rains. Sowing of kharif pulses as on Aug 21 stood at 9.26 million hectare as compared to 9.94 million hectare last year, government data showed. 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. The 4th Advance Estimates pegged total pulses output for 2013-14 at 19.27 mn tn, up from 18.34 mn tn earlier. There was a delay in the harvesting of the chana crop along with some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. As per the Ministry of Agriculture, area under Rabi Pulses 2013-14 stood at 161.9 lakh ha as against 152.65 lakh ha last year. Chana sowing stood at 10.21 mn ha compared to 9.51 mn ha during the same period last year. According to India Pulses and Grains Association, Apr-Dec’13 stood at import 2.4 mn tn vs 2.8 mn tn last year. In value terms, India imported $2.3 billion of pulses in 2012-13, almost 28% higher over $1.85 billion in the preceding year. In Delhi spot market, chana gained by 7.8 rupee to end at 2923.1 rupee per 100 kgs.se 228% to 517,095 tn as against 157,799 tn between Apr-Feb ’13. Technically market is under fresh buying as market has witnessed gain in open interest by 25.41% to settled at 93860, now Chana is getting support at 2892 and below same could see a test of 2864 level, And resistance is now likely to be seen at 2944, a move above could see prices testing 2968.