NCDEX Chana under fresh buying; Support seen at 4352

Technically Chana market is under fresh buying as market has witnessed gain in open interest by 2.24% to settled at 63530 while prices up 33 rupees.

Now NCDEX Chana is getting support at 4352 and below same could see a test of 4301 levels, and resistance is now likely to be seen at 4437, a move above could see prices testing 4471.

Chana yesterday settled up by 0.75% at 4404 as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments. However, reports of NAFED started releasing its stocks have arrested uptrend in Chana.

Further, higher production estimates this year also weighed on the sentiments. The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states under price support scheme.

As of Jun 30, 2020 NAFED has procured 20.55 lakh tonne Chana. Chana import for 2019-20 (Apr-Mar) stood at 3.71 lakh tonnes as against 1.86 lakh tonnes imported during the corresponding period of the previous year.

Apart from Chana, it has been reported that around 6.67 lakh tonnes of Pea has been imported during 2019-20 (Apr-Mar) and total pulses import stood at 29.75 lakh tonnes.

Canada Government in its June month report informed the Chickpea area seeded is expected to decrease sharply from 2019-20 due to difficulties during previous harvest and lower yields.

After three years of drought, Australia will see its crop production spike in 2020-21, according to the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).

Trading Ideas:
–Chana trading range for the day is 4301-4471.
–Chana prices gained as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments
–The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states
–NAFED has extended procurement period for Chana in Madhya Pradesh up to 29th July 2020.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4400 Rupees per 100 kgs.