Chana dropped Rs 170 and settled at Rs 4377 per quintal as improvement in rains boosted prospects of higher production of other summer-sown pulses. Stockists and local dealers don't expect further decline in chana prices due to strong consumer demand in the ongoing festival season and it could negate higher supplies of other summer-sown pulses. Arrivals from the new season crop have begun in small quantities and may cap the gains. A majority of Indians celebrate the Ganesh festival this month, Dussehra in October and Diwali in November. Consumption of all pulses rises during the festive period. India's monsoon rains were 44 percent above average in the week to Sept. 19, the fourth consecutive week of plentiful rainfall. The total daily arrivals were hovering at the levels of around 23000 bags in the entire major mandies. Recent good rains in growing States of MP and Rajasthan have improved the sowing prospects that would start from Oct-Nov onwards. There are reports of improved Urad and Tur production prospects also from good rains in Central India. Existing Special Margin of 20% (in cash) on the Long side shall be reduced to 10% (in cash) on all the running contracts and yet to be launched contracts in Chana with effect from beginning of day Monday, September 24, 2012. In Delhi spot market, chana fell down by -27.45 rupee to end at 4586.1 rupee per 100 kgs. The volume was noted at 88850 lots. Support for chana is at 4314 below that could see a test of 4251. Resistance is now seen at 4501 above that could see a resistance of 4625.

Trading Ideas:

Chana trading range for the day is 4251-4625.

Chana dropped as improvement in rains boosted prospects of higher production of other summer-sown pulses.

Existing Special Margin of 20% on the Long side shall be reduced to 10% wef Monday

NCDEX accredited warehouses chana stocks dropped by 49 tonnes to 50414 tonnes.

In Delhi spot market, chana fell down by -27.45 rupee to end at 4586.1 rupee per 100 kgs.