Chana gained Rs 63 and settled at Rs 4586 per quintal on value buying while a steady spot demand supported the rally. However, a revival in monsoon rains that raised hopes of higher sowing is seen restricting the upside. Chana is a rabi crop sown in October and depends on the monsoon for soil moisture. Farmers completed sowing of kharif pulses on 9.82 million hectares by Sept. 6, down from 10.44 million hectares a year earlier. Market sources suggested that heavy rainfall in northern and central parts of the country has increased the soil moisture content to 96% from 25% in the last one month. This might encourage the steady sowing of chana in the current year. Three-quarters of the way into the season the rains are still 10 percent short of normal, but the drought's severity has declined as rainfall picked up during the last fortnight in west and south India, where output of cereals and pulses had been threatened. Chana prices might also discourage by bearish trend in other pulses such as Urad and Moong. Assocham estimates, 21 mn tn of pulses demand in 2012-13 and is likely to reach at 21.42 mn tn in 2013-14 and 21.91 MT in 2014-15. In Delhi spot market, chana jump up by 28.85 rupee to end at 4653.85 rupee per 100 kgs. The volume was noted at 167760 lots. Support for chana is at 4499 below that could see a test of 4411. Resistance is now seen at 4650 above that could see a resistance of 4713.

Trading Ideas:

Chana  trading range for the day is 4411-4713.

Chana rose on value buying while a steady spot demand supported the rally.

Revival in monsoon rains that raised hopes of higher sowing is seen restricting the upside.

NCDEX accredited warehouses chana stocks gained by 167 tonnes to 50894 tonnes.

In Delhi spot market, chana jump up by 28.85 rupee to end at 4653.85 rupee per 100 kgs.