Chana ended up recovering all its early day losses on short covering by traders at lower levels. Chana earlier in the day extended losses into a fifth straight session to hit fresh contract lows yesterday as rising arrivals amid tepid demand and estimate of higher output hurt sentiment. Arrivals are rising from southern India, but demand is not improving. In the Delhi spot market price gained by over 13 rupees to 2330.55 rupees. Chana gained Rs 23 and settled at Rs 2320 per quintal. The volume was noted at 62710 lots. Support for chana is at 2289 below that could see a test of 2259. Resistance is now seen at 2337 above that could see a resistance of 2355.

Trading Ideas:

Chana trading range is 2260-2280.

Chana ended up on short covering on lower levels

Support for the chana is at 2302 and resistance is at 2337.

Arrivals are rising from southern India, but demand is not improving

In the Delhi spot market price gained by over 13 rupees to 2330.55 rupees.

BUY CHANA FEB @ 2310-2320 SL 2290 TGT 2334-2356-2365.NCDEX