Chana settled flat driven by anticipation of better demand in the coming days due to Ramadan festival. Further, restricted arrivals in the physical market due to lower estimated output too supported chana prices. Weak monsoon is already affecting kharif crops and there is a concern going on that it may hamper rabi sowing too. India's southwest monsoon, which accounts for 80% of the country's rainfall, is likely to be deficient this year, the Indian Metrological Department (IMD) said in its revised forecast amid possibility of El Nino.

There has been no improvement in monsoon rains and India continues to face rainfall deficiency, which remained unchanged at 42% until Jul 8, triggering fear of sharp drop in farm output. Chana was sown over an area of 10.21 million hectare compared to 9.5 million hectare a year ago thanks to normal monsoon and good soil moisture. Agriculture ministry has estimated chana output at record 9.79 million ton up from 8.83 million ton a year ago. Domestic demand for the pea is very weak as the quality available in domestic market is of inferior variety.

The market sources suggested that favourable rainfall in Madhya Pradesh and Rajasthan from the last two days will encourage the timely harvesting of kharif crop and also provide better conditions for chana sowing in the rabi season. In Delhi spot market, chana gained by 20 rupee to end at 2750 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 2.82% to settled at 150710, now Chana is getting support at 2769 and below same could see a test of 2745 level, And resistance is now likely to be seen at 2818, a move above could see prices testing 2843.

Trading Ideas:

Chana trading range for the day is 2745-2843.

Chana ended with small gains on short covering driven by anticipation of better demand in the coming days due to Ramadan festival.

Further, restricted arrivals in the physical market due to lower estimated output too supported chana prices.

NCDEX accredited warehouses chana stocks gained by 121 tonnes to 124093 tonnes.

In Delhi spot market, chana gained by 20 rupee to end at 2750 rupee per 100 kgs.