Chana yesterday traded with the positive node and settled 0.36% up at 2537 on moderate recovery in chana rates were observed as arrivals fell in the mandis. But till higher production aspects however kept pressure on the market sentiments. Prospects of higher production from satisfactory sowing activities in growing states could prevent major rise in rates. Even though there are higher production estimates for Pulses and higher sowing area expected for chana, traders expect demand to rise as rates have fallen significantly over last few days. The estimates of crop production for Year 2010-11 puts a significant projected rise in Kharif Pulses production at 6 million tonnes vs the previous projections of 4.3 million metric tonnes—showing a significant rise of 40% for the projected production estimates. In Delhi spot market, chana jump up by 25 rupee to end at 2425 rupee per 100 kgs. For today's session market is looking to take support at 2525, a break below could see a test of 2514 and where as resistance is now likely to be seen at 2545, a move above could see prices testing 2554.

Trading Ideas:

Chana trading range is 2514-2554.

Chana ended flat to positive but still pressure is been seen due to better production from better rains.

India's pulses production will rise by 2 million tonnes this year, compared to last year.

India has raised minimum support price (MSP) of chana by 19.3 percent to 2,100 rupees per 100 kg

SELL CHANA JAN @ 2535-2545 SL 2565 TGT 2516-2495-2478.NCDEX

In Delhi spot market, chana jump up by 25 rupee to end at 2425 rupee per 100 kgs.