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 0.48% at 5400 as Centre to release 1.4 lakh tonnes of pulses from buffer stock. In a bid to cool down the recent hike in pulses prices, the Union government plans to release 40,000 tonnes of tur dal from its buffer stock into the retail market in small lots.
Five States have expressed an interest in buying one lakh tonnes of the dal from the Central buffer stock at MSP (minimum support price) rates to sell at subsidised prices, according to the Department of Consumer Affairs (DoCA). Suspension of chana sale by Nafed is a good decision when sowing is on.
However, there is a rumor in the market that Australian chana may enter into India through Tanzania. The quantity in question is around 20,000 Mt.If it happens then chana may slip below MSP. New crop in Australia is being harvested in Australia and production is said to be around 7 lakh MT this year.
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.
Trading Ideas:
–Chana trading range for the day is 5335-5477.
–Chana prices dropped as Centre to release 1.4 lakh tonnes of pulses from buffer stock.
–Suspension of chana sale by Nafed is a good decision when sowing is on.
–However, there is a rumor in the market that Australian chana may enter into India through Tanzania.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5303.35 Rupees per 100 kgs.