Chana dropped Rs 18 and settled at Rs 3086 per quintal due to profit taking seen at higher levels as prices slipped below 3100 levels in the wake of sturdy liquidation of traders with the anticipation of fresh supplies of summer pulses at major mandies. The latest Govt estimates put Pulses production at 18.09 million tonnes in 2010-11 vs 14.66 million tonnes the previous year thus raising production estimates by ~23%.With Monsoon picking up in Pulses growing states of MP, AP and Maharashtra, the overall production can be expected to remain high. Firm trend in other Pulses too could support the rates though good progress of sowing activities for Kharif Pulses like Tur, Urad and Moong can dampen the market sentiments for Chana to some extent. In Delhi spot market, chana fell down by -9.5 rupee to end at 2958 rupee per 100 kgs. The volume was noted at 260390 lots. Support for chana is at 3058 below that could see a test of 3029. Resistance is now seen at 3114 above that could see a resistance of 3141.

Trading Ideas:

Chana trading range is 3029-3141.

Chana dropped due to profit taking seen at higher levels as prices slipped below 3100 levels.

Govt estimates put Pulses production at 18.09 million tonnes in 2010-11 vs 14.66 million tonnes

NCDEX accredited warehouses chana stocks gained by 185 tonnes to 162646 tonnes.

In Delhi spot market, chana fell down by -9.5 rupee to end at 2958 rupee per 100 kgs.