Chana dropped Rs 18 and settled at Rs 2598 per quintal on profit booking at higher levels brought some corrections to Chana rates as the market rates remained moderately firm. Good demand and expected delay in arrivals of the new crop are likely to keep trend firm for the commodity in the medium term though traders expect some more dips cannot be ruled out at these higher levels before demand rises again in the mandis. Reports of delayed arrivals from AP and Karnataka due to the unseasonal rains last year along with reports of fall in production there have been supporting the market sentiments for chana also floods in Australia are reportedly affecting the crop there also leading to lower imports from Indian subcontinent. Lower arrivals in the North along with improved demand from wedding season is also keeping the trend firm for chana firm trend in other Pulses like Tur and Urad too kept trend firm for chana. The area under Tur and Urad is expected to rise more as farmers reportedly got good returns last year. Higher imports too kept prices on check. In Delhi spot market, chana fell down by -24.45 rupee to end at 2545.25 rupee per 100 kgs. The volume was noted at 104390 lots. Support for chana is at 2583 below that could see a test of 2568. Resistance is now seen at 2617 above that could see a resistance of 2636.

Trading Ideas:

Chana trading range is 2570-2638.

Chana yesterday ended down on profit booking at higher levels

Chana is taking resistance at 2617 and support is seen at 2583.

NCDEX accredited warehouses chana stocks rose 1432 tonnes to 14260 tonnes.

In Delhi spot market, chana fell down by -24.45 rupee to end at 2545.25 rupee per 100 kgs.