Chana settled down -0.75% at 4658 due to lower demand in the spot market. Deficit monsoon in August and expensive imports may support the prices at higher levels in coming weeks. As per 4th Advance Estimates for 2014-15, Chana production is estimated at 7.17 million tonnes (mt) against 7.59 mt in 3rd estimate. According to the latest govt data, country has imported about 39,270 tonnes of chana in April 2015 and 4.19 lt during MY 2014-15, which is more than 51.8 per cent higher than the quantity imported in the entire MY 2013-14. Total import of chana in 2013-14 stood at 2.76 lakh tonnes. Earlier Government has extended duty free imports of pulses including chana till September 2015. Sowing of pulses in Maharashtra has been done in 66% area of fixed target of 24.50 lakh ha, which is up from last year’s sowing area. Around 9.3 lakh ha area has been sown under Tur vs 9 lakh ha last year. Meanwhile, Moong has been sown in 3.33 lakh ha and urad in 2.42 lakh ha while its sowing target has been fixed 5.60 lakh ha and 5.10 lakh ha respectively. Center has asked, state governments, to control the domestic prices and take stringent action against hoarders and boost supply. Meanwhile, all the warehouses registered with Warehouse Development and Regulatory Authority (WDRA) exempted from the stock limits. Technically market is under long liquidation as market has witnessed drop in open interest by -1.92% to settled at 153880 while prices down -35 rupee, now Chana is getting support at 4632 and below same could see a test of 4607 level, And resistance is now likely to be seen at 4701, a move above could see prices testing 4745.

Trading Ideas:

Chana trading range for the day is 4607-4745.

Chana prices ended with losses due to lower demand in the spot market.

There are sufficient stocks available in the country due to nil import duty on chana since December.

NCDEX accredited warehouses chana stocks dropped by 4414 tonnes to 110500 tonnes.

In Delhi spot market, chana dropped by -25 rupee to end at 4800 rupee per 100 kgs.