Technically Chana market is under fresh buying as market has witnessed gain in open interest by 8.62% to settled at 62020 while prices up 105 rupees.
Now NCDEX Chana is getting support at 5089 and below same could see a test of 5007 levels, and resistance is now likely to be seen at 5249, a move above could see prices testing 5327.
Chana yesterday settled up by 2.07% at 5171 due to less imports, NAFED selling on higher prices and allocation of additional 3 lakh ton in buffer stock. Lower supplies and increased festive demand in the domestic markets brought long accumulation in chana.
NAFED continued to procure high amounts of Chana after the government of India had declared Rs 1 lakh stimulus package for the agriculture sector. NAFED continues to buy Chana from MSP levels of Rs 4,875 per quintal from the major states of Madhya Pradesh, Rajasthan and Uttar Pradesh.
Chana arrivals in the local mandi and has been reportedly lower in the rural and semi urban regions. With the economy coming out of lockdown, consumption is likely to increase and prices are also rising due to festive season demand.
Arrival of dollar chana in mandis across Madhya Pradesh today was recorded at 7,000 bags against 1,500 bags in Indore mandis.
A gradual improvement in demand with easing of lockdown norms will boost the demand for pulses going ahead, especially in view of the onset of the long festival season. The conflation of a recovery in bulk demand with a smaller crop in the 2019-20 (Jul-Jun) rabi season is also likely to contribute to the rise in prices.
Trading Ideas:
–Chana trading range for the day is 5007-5327.
–Chana prices rallied due to less imports, NAFED selling on higher prices and allocation of additional 3 lakh ton in buffer stock.
–Lower supplies and increased festive demand in the domestic markets brought long accumulation in chana.
–NAFED continues to buy Chana from MSP levels of Rs 4,875 per quintal from the major states of Madhya Pradesh, Rajasthan and Uttar Pradesh.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5086.9 Rupees per 100 kgs.