Chana settled up 0.67% at 3145 on the expectations of pick-up in local demand ahead of the wedding season and the concerns over the shift in acreage in the key producing state, though large stocks and prospects of a better crop capped the gains in chana prices. As on now, farmers have planted pulses on 12.68 million hectares as compared with 12.12 million hectares in the same period a year ago, according to the farm ministry. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana has been reported at 86.92 lakh hectares against 83.57 lakh hectares in the last year in same period. Sources mentioned that the total production of chana in the current year is likely to be around 75-76 lakh tonnes, up 4-5 lakh tonnes from the last year due to favourable monsoon rainfall and comfortable sowing conditions in major producing states. The prices will be pressurized by fresh supplies from Andhra Pradesh. As per the market sources , fresh arrivals of around 4000-5000 bags of chana have been reported in the major mandies of Andhra Pradesh , while around 100-200 bags of chana have been seen in Karnataka. Sources are expecting that fresh arrivals are likely to gain momentum from the last week of January. In Delhi spot market, chana gained by 25.55 rupee to end at 2963.9 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.57% to settled at 53180 while prices up 21 rupee, now Chana is getting support at 3117 and below same could see a test of 3089 level, And resistance is now likely to be seen at 3168, a move above could see prices testing 3191.

Trading Ideas:

Chana trading range for the day is 3090-3192.

Chana gained on the expectations of pick-up in local demand ahead of the wedding season and the concerns over the shift in acreage.

As on now, farmers have planted pulses on 12.68 million hectares as compared with 12.12 million hectares in the same period a year ago

NCDEX accredited warehouses chana stocks dropped by 193 tonnes to 11867 tonnes.

In Delhi spot market, chana dropped by -3.55 rupee to end at 2950 rupee per 100 kgs.