Chana dropped Rs 59 and settled at Rs 4388 per quintal on subdued demand from millers while weak trade in other pulses also weighed on sentiment. The prospects of an increased area under chana cultivation, because of improved rains late in the season, also weighed on sentiment. the weakness in demand to continue for a week, with the Ganesh celebrations coming to an end and other major festivals still a month away. Moreover, buying was seen in other pulses such as Urad and Moong as prices increased by almost Rs 100 per quintal. The latest first kharif advance estimates by government has also supported the futures prices from lower levels. The latest government data estimated the total Kharif Pulses 2012 crop at 5.26 lakh tonnes , down 0.90 million tonnes from the final estimates of 2011-12. India Pulses output pegged at 17.21 mn tn in 2011-12 compared with 18.24 mn tn produced in the year 2010-11 according to fourth advance estimates. Chana output in 2011-12 is estimated at 7.58 million tons, tur at 2.65 million tons, urad at 1.83 million tons and moong at 1.71 million tons. 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. Recent good rains in growing States of MP and Rajasthan have improved the sowing prospects that would start from Oct-Nov onwards. In Delhi spot market, chana fell down by -19.7 rupee to end at 4445.3 rupee per 100 kgs. The volume was noted at 104640 lots. Support for chana is at 4341 below that could see a test of 4294. Resistance is now seen at 4445 above that could see a resistance of 4502.

Trading Ideas:

Chana  trading range for the day is 4294-4502.

Chana dropped on subdued demand from millers while weak trade in other pulses also weighed on sentiment.

The prospects of an increased area under chana cultivation, because of improved rains late in the season

NCDEX accredited warehouses chana stocks dropped by 140 tonnes to 48300 tonnes.

In Delhi spot market, chana fell down by -19.7 rupee to end at 4445.3 rupee per 100 kgs.