Chana yesterday settled up 3.6% at 3222 on hopes of some improvement in local demand in the festival season, though prospects of increased area under cultivation and higher stocks limited the upside. Chickpea is a rabi crop sown during winter. Farmers depend on rains to moisten the land for sowing. Some demand is seen at lower prices but prices are unlikely to sustain at higher levels because stocks are very high. The area sown for kharif pulses stood at 102.93 lakh hectares as on 6 September 2013, up by 5.35 percent when compared to the same period last year, according to the data released by the Ministry of Agriculture on 6 September. The area sown for kahrif pulses in Gujarat touched 4.83 lakh hectares, an increase of 31% when compared to the same period last year as on 2 September. Besides weak demand, dry weather conditions in Madhya Pradesh over the last one week have improved prospects of the crop output in tur, moong and urad. The area under pulses has increased to 93.25 lakh hectares this year against 74.48 lakh hectares last year. With heavy rains lashing the State during June-August, traders and farmers were apprehending damage to standing crops due to water-logging. In Delhi spot market, chana gained by 50 rupee to end at 3150 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.43% to settled at 151300 while prices up 112 rupee, now Chana is getting support at 3143 and below same could see a test of 3063 level, And resistance is now likely to be seen at 3267, a move above could see prices testing 3311.

Trading Ideas:

Chana trading range for the day is 3063-3311.

Chana ended with gains on hopes of some improvement in local demand in the festival season

Some demand is seen at lower prices but prices are unlikely to sustain at higher levels because stocks are very high.

NCDEX accredited warehouses chana stocks gained by 10 tonnes to 109290 tonnes.

In Delhi spot market, chana gained by 50 rupee to end at 3150 rupee per 100 kgs.