Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 13 January 2014

Chana Chana settled up 1.65% at 3137 on concerns about yield from top producer Madhya Pradesh state due to a cold wave while firm prices of other pulses also aided sentiment. However, higher stocks from the old crop and prospects of increased production capped the upside. Higher prices of moong and urad are supporting the upside in chana. Farmers had planted pulses on 14.64 million hectares, up from 14.26 million hectares in the same period a year earlier, according to the farm ministry. India's total production of pulses is estimated at 18.45 million tons during 2012-13. In addition, Government of India has imported 3.83 million tons of pulses during 2012-13 to fulfil the requirement of the country, the data from the Ministry of Agriculture showed. Contrary to expectations, buying ahead of the Makar Sankranti this month has been comparatively weak unlike the previous year, leading to vertical fall in prices over the last few days. Though the recent `mawtha' (winter rain) appears to have bolstered the prospect of the standing crop, chana output this year is set to decline to 72-75 lakh tonnes from 85 lakh tonnes last year. With robust crop output last year, chana prices throughout the year remained low compared with last year, amid demand for cheap imported dollar chana (chickpea) in local mandis. In Delhi spot market, chana gained by 25 rupee to end at 2950 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 4.71% to settled at 78870 while prices up 51 rupee, now Chana is getting support at 3104 and below same could see a test of 3070 level, And resistance is now likely to be seen at 3155, a move above could see prices testing 3172.