Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 6 August 2013

Chana Chana yesterday settled up 1.61% at 2846 tracking firm cues from the spot market where demand improved at lower levels, though hopes of higher summer-sown output limited the upside. Chana prices are expected to extend gains on emerging festive demand. Selling pressure in the spot market has declined. Spot demand likely to stay firm due to increase in demand in the holy month of Ramadan and ahead of Raksha Bandhan. Chickpea production in the country is estimated at 8.8 mn tons in 2012-13 season, according to the fourth advance estimates released by the Ministry of Agriculture. With a significant hike in minimum support price (MSP) of kharif pulses for 2013-14 season, the area under cultivation is expected to increase this year. The MSP of Tur has been raised by 450 to 4,300 per 100 kgs moong by 100 to 4,500 per 100 kgs while Urad has been kept unchanged at 4,300 per 100 kgs. Good monsoon rain fall may not only support good yield of kharif pulses, but also ensure favourable soil condition for sowing of Rabi pulses, chana and moong. The total area sown under pulses for 2013-14 kharif crop is estimated at 31.62 lakh hectares (lh) higher when compared to the 20.54 lh during the same period last year. According to the government of Andhra Pradesh the area sown under pulses is up by 1.5% at 4.02 lh. The area sown under pulses has touched 4.51 lh in Rajasthan as per the government estimates. In Delhi spot market, chana gained by 31 rupee to end at 2930.7 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 4.06% to settled at 133980 while prices up 45 rupee, now Chana is getting support at 2805 and below same could see a test of 2765 level, And resistance is now likely to be seen at 2878, a move above could see prices testing 2911.