Chana settled down -0.13% at 3002 due to supplies from the new season crop and higher carry-forward stocks. Increased area under cultivation raising hopes of higher crop also added to the downside. Higher production reports and lack of strong demand is preventing any major recovery for the commodity. Good weather conditions in growing states, high supplies of Tur, Urad and Moong have kept market sentiments weak. As per market sources, fresh arrivals of around 4000-5000 bags of chana have been reported in the major producing states such as Karnataka, Maharashtra and Gujarat. The prices were trading in the range of Rs 2600-2800 per quintal. The arrivals will be increased to 10-12 thousand bags in the next week. Moreover, higher sowing acreage in major producing states added selling in chana market. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana as on now has been reported at 103.3 lakh hectares, up 8% from the previous year. This will increase the chana production to 74-75 lakh tonnes in the near term. The chana crop will also be well supported by favourable rainfall in northern India from the last two days. This will boost the productivity of crop. Sowing operations are progressing in major growing states such as Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka. In Delhi spot market, chana dropped by -0.85 rupee to end at 2836.65 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 2.3% to settled at 76090 while prices down -4 rupee, now Chana is getting support at 2987 and below same could see a test of 2972 level, And resistance is now likely to be seen at 3015, a move above could see prices testing 3028.

Trading Ideas:

Chana trading range for the day is 2972-3028.

Chana prices seen under pressure due to supplies from the new season crop and higher carry-forward stocks.

Higher production reports and lack of strong demand is preventing any major recovery for the commodity.

NCDEX accredited warehouses chana stocks dropped by 10 tonnes to 12598 tonnes.

In Delhi spot market, chana dropped by -0.85 rupee to end at 2836.65 rupee per 100 kgs.