Technically Chana market is under fresh buying as market has witnessed gain in open interest by 2.16% to settled at 63990 while prices up 40 rupees.
Now NCDEX Chana is getting support at 5056 and below same could see a test of 4984 levels, and resistance is now likely to be seen at 5175, a move above could see prices testing 5222.
Chana yesterday settled down by 0.61% at 5398 on continued profit booking after prices seen supported amid reports of crop damage due to heavy rains, which has also made the initial forecast of a bumper crop of pulses look increasingly uncertain.
While the crop is yet to arrive in the market, delay in issuing import licences by the central government has also pushed up prices. India allows import of 4 lakh tonnes (lt) of the pulse with the government normally allowing processors to complete imports before the arrival of the domestic crop.
The fate of moong, another major kharif pulse, is no different as reports of extensive damage to the crop have come in from various parts of the country. Like tur, the import quota for moong is yet to be released while its harvest season has started.
Quality concerns seem to be higher in moong than urad, which has fetched farmers higher than MSP (Rs 7,196 per quintal) for quality produce.
As rains continue to batter parts of Maharashtra, Karnataka, Madhya Pradesh and Rajasthan, further downward revision in production is not ruled out. All eyes, however, are on the government’s next move with trade sources wary of an onion like kneejerk reaction to control prices.
Trading Ideas:
–Chana trading range for the day is 5335-5489.
–Chana dropped on continued profit booking after prices seen supported amid reports of crop damage due to heavy rains
–While the crop is yet to arrive in the market, delay in issuing import licences by the central government has also pushed up prices.
–As rains continue to batter parts of Maharashtra, Karnataka, Madhya Pradesh and Rajasthan, further downward revision in production is not ruled out.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5303.4 Rupees per 100 kgs.