Chana gained Rs 33 and settled at Rs 2551 per quintal on poor stocks and on hopes of a pick-up in domestic demand, Prospects of higher production from reportedly satisfactory sowing activities in growing states could prevent a major uptrend in rates. Even though there are higher production estimates and higher sowing area expected for chana, traders expect demand to rise as the rates have fallen significantly over last few days A 20% rise in MSP provided support to the prices. MSP has been hiked to Rs 2100/Q for the 2010-11 seasons vs. Rs 1760/Q last season. Rains in growing areas have improved moisture content of the soil leading to better sowing. In Indore, a major trading centre in Madhya Pradesh state, chana gained 30 rupee to end at 2,373 rupees per 100 kg. Total acreage in 2010/11 is likely to rise by 15-20 percent due to abundant soil moisture and higher government support price, which is encouraging farmers to increase area under cultivation. Support for chana is at 2538 below that could see a test of 2525. Resistance is now seen at 2577 above that could see a resistance of 2603.

Trading Ideas:

Chana trading range is 2527-2605.

Chana settled higher on poor stocks and on hopes of a pick-up in domestic demand

Chana is taking resistance at 2581 and support is seen at 2542.

NCDEX accredited warehouses chana stocks seen at 17241 tonnes.

SELL CHANA JAN @ 2565-2575 SL 2590 TGT 2535-2510.NCDEX

In Delhi spot market, chana jump up by 7.45 rupee to end at 2474.45 rupee per 100 kgs.