Chana dropped Rs 3 and settled at Rs 2494 per quintal on prospects of higher production on reports of good sowing activities in growing areas. The production prospects have been good this year and even arrivals are good in the market. Though, the demand remains steady in the mandis for the commodity. The 1st Advanced Estimates of crop production for Year 2010-11 puts a significant projected rise in Kharif Pulses production at 6 million tones. In Delhi spot market, chana fell down by -17.2 rupee to end at 2432.8 rupee per 100 kgs. The volume was noted at 39500 lots. Support for chana is at 2475 below that could see a test of 2457. Resistance is now seen at 2505 above that could see a resistance of 2517.

Trading Ideas:

Chana trading range is 2456-2516.

Chana settled weak on prospects of higher production on reports of good sowing

Chana is taking resistance at 2505 and support is seen at 2475.

NCDEX accredited warehouses chana stocks fell 3 tonnes to 17218 tonnes.

In Delhi spot market, chana fell down by -17.2 rupee to end at 2432.8 rupee per 100 kgs.