Technically Chana market is under fresh buying as market has witnessed gain in open interest by 3.56% to settled at 47700 while prices up 77 rupees.
Now NCDEX Chana is getting support at 5300 and below same could see a test of 5232 levels, and resistance is now likely to be seen at 5437, a move above could see prices testing 5506.
Chana yesterday settled up by 1.46% at 5368 as NAFED has now suspended sales of chana in the open market “till further notice”.
Rally in chana prices has also been helped by the distribution of the pulse under the Pradhan Mantri Garib Kalyan Anna Yojana, under which 800 mln individual received 1 kg of free pulses every month till November.
This led to clearance of carryover stocks from the previous year’s crop and as a result, overall stocks dwindled. Strong domestic demand for chana during the ongoing festival season has also supported prices.
The elevated prices would also attract farmers to add more area under the pulse during the upcoming rabi sowing, which has started in some growing regions. Members had earlier demanded the government reduce import duty on chana.
However, reports suggest that the government is not considering such a move as imports may harm the interests of farmers and lead to lower sowing.
With supply issues persisting and government likely to take measures with an eye on encouraging more sowing, the retail customer may be left paying more to consume basic food items like pulses. Traders are keeping an eye on rejecting or approving tenders by Nafed to understand the direction of prices.
Trading Ideas:
–Chana trading range for the day is 5232-5506.
–Chana prices ended with gains as NAFED has now suspended sales of chana in the open market “till further notice”.
–Rally in chana prices has also been helped by the distribution of the pulse under the PMGKAY, under which 800 mln individual received 1 kg of free pulses every month.
–With supply issues persisting and government likely to take measures with an eye on encouraging more sowing
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5193.35 Rupees per 100 kgs.