Technically Chana market is under long liquidation as market has witnessed drop in open interest by 2.03% to settled at 49740 while prices down 71 rupees.
Now NCDEX Chana is getting support at 5181 and below same could see a test of 5150 levels, and resistance is now likely to be seen at 5254, a move above could see prices testing 5296.
Chana yesterday settled down by 1.34% at 5211 on profit booking after estimates kharif Pulses production in 2020-21 has been pegged at 93.1 Lakh tonnes, 20.6% higher than 77.2 Lakh tonnes produced in 2019-20.
However Government’s announcement of providing free Pulses to the poor till November shall be preventing fall in prices in coming weeks, since it has resulted in higher procurement by the Government agencies.
There is no import parity till Rs. 6000-6500/qtl. Therefore chances of imports to occur are unlikely this year, thereby keeping supplies restricted. At the same time inflation is well under control so intervention from the Government is least likely as of now.
Also the daily arrivals till date are quite lower than the daily arrivals during corresponding period of last year. This is indicative of the fact that farmers and stockists are still holding most of the produce anticipating further price appreciation in near term.
This also indicates that the actual production of Chana for year 2019-2020 may be lower as estimated earlier, than the year before.
Consumption continues under the PMGKAY scheme while demand for sowing will improve soon as the planting season approaches. Trade sources say that nearly 7-10 Lakh tonnes of Chana will be required additionally for planting of Chana.
Trading Ideas:
–Chana trading range for the day is 5150-5296.
–Chana dropped on profit booking after estimates kharif Pulses production in 2020-21 has been pegged at 93.1 Lakh tonnes
–Chana prices has also been supported in recent period helped by the distribution of the pulse under the Pradhan Mantri Garib Kalyan Anna Yojana
–Traders are keeping an eye on rejecting or approving tenders by Nafed to understand the direction of prices.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5075.7 Rupees per 100 kgs