Chana dropped Rs 8 and settled at Rs 2556 per quintal trading firm on falling arrivals in the mandis from the adverse weather conditions in most states supported the rates for Chana and other Pulses. Overall sentiments are likely to remain moderately up in the short term but overall 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, demand will keep its pace as rates have fallen significantly over last few days rains in growing areas in UP, Rajasthan, MP, Maharashtra and Karnataka have improved moisture content of the soil leading to better sowing. However, reports of slight delay in sowing activities could perk up market sentiments. The 1st Advanced 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 4.35 rupee to end at 2462.75 rupee per 100 kgs. Support for chana is at 2546 below that could see a test of 2535. Resistance is now seen at 2573 above that could see a resistance of 2589.

Trading Ideas:

Chana trading range is 2536-2590.

Chana looks firm as arrivals in mandis from the adverse weather conditions

In Delhi total arrivals of chana around 25 motors against 30 motors reported previous day.

NCDEX accredited warehouses chana stocks rose 182 tonnes to 17701 tonnes.

SELL CHANA JAN @ 2580 SL 2600 TGT 2558-2522.NCDEX

In Delhi spot market, chana jump up by 4.35 rupee to end at 2462.75 rupee per 100 kgs.