Chana dropped Rs 106 and settled at Rs 3582 per quintal as traders took profits in the wake of higher supplies from the new season crop in the spot market. Due to approaching Holi festival, there is not much activity in spot markets though arrivals are rising and are expected to gain further momentum in the next week. Arrivals of chana, or chickpeas, in the central state of Madhya Pradesh, the country's biggest producer, topped 100,000 bags of 100 kg each. Supplies from the new crop, which is sown in October-November and harvested in February-March, in Rajasthan have also started. As per IPGA reports, Pulses production during current fiscal is expected to fall by 5-7% from 18.3 million tonnes in 2010-11 due to inadequate rains in some growing areas. A fall in production reports in Pulses could provide medium to long term uptrend for the commodity. Reports from Australia indicates rise in production there by 15000 tonnes to 3.94 lakh tonnes in 2011-12. The other major producers for Pulses namely Myanmar, Australia and Canada are likely to report a fall due to adverse weather. Pulses output is expected to fall by 5.26% to 17.29 mln tonnes vs 18.24 mln tonnes in 2010-11. The total daily arrivals of chana were hovering at the levels of around 2.25 lakh bags in the entire major mandis against 2.10 lakh bags on last day. In Delhi spot market, chana fell down by -65.15 rupee to end at 3561.75 rupee per 100 kgs. The volume was noted at 117130 lots. Support for chana is at 3532 below that could see a test of 3483. Resistance is now seen at 3646 above that could see a resistance of 3711.

Trading Ideas:

Chana  trading range for the day is 3483-3711.

Chana fell on profit booking in the wake of higher supplies from the new season crop in the spot market

Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Estimates.

NCDEX accredited warehouses chana stocks dropped by 192 tonnes to 13219 tonnes.

In Delhi spot market, chana fell down by -65.15 rupee to end at 3561.75 rupee per 100 kgs.