Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 2 September 2014

Chana Chana settled up 0.48% at 2939 as demand rose in spot markets due to the festivals. However, improved output prospects due to higher coverage this year, capped some gains in chana prices. Domestic demand for chana is very strong on festivals and also rainy season starts demand for leafy vegetables declines. Sowing of kharif pulses stood at 9.26 million hectare as compared to 9.94 million hectare last year, government data showed. 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 record output at 9.79 million ton up from 8.83 million ton a year ago, which could revised downwards. The 4th Advance Estimates pegged total pulses output for 2013-14 at 19.27 mn tn, up from 18.34 mn tn earlier. There was a delay in the harvesting of the chana crop along with some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. As per the Ministry of Agriculture, area under Rabi Pulses 2013-14 stood at 161.9 lakh ha as against 152.65 lakh ha last year. Chana sowing stood at 10.21 mn ha compared to 9.51 mn ha during the same period last year. According to India Pulses and Grains Association, Apr-Dec’13 stood at import 2.4 mn tn vs 2.8 mn tn last year. In Delhi spot market, chana gained by 38.35 rupee to end at 2961.45 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 6% to settled at 99500 while prices up 14 rupee, now Chana is getting support at 2917 and below same could see a test of 2896 level, And resistance is now likely to be seen at 2952, a move above could see prices testing 2966.