Technically Chana market is under long liquidation as market has witnessed drop in open interest by 3.52% to settled at 47990 while prices down 42 rupees.
Now NCDEX Chana is getting support at 5089 and below same could see a test of 5010 levels, and resistance is now likely to be seen at 5230, a move above could see prices testing 5292.
Chana yesterday settled down by 0.81% at 5169 due to better market prices of gram, sowing area of gram has increased by more than 30 percent.
According to the data released by the Ministry of Agriculture, the sowing of Rabi season has been done in 265 lakh hectare, which is 10 percent more than the total sowing of 242 lakh in the same period last year.
Madhya Pradesh has recorded an increase of 5.4 lakh hectare in this season and 2.5 lakh hectare in Punjab as compared to the same period of the last Rabi. 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 5010-5292.
–Chana prices dropped due to better market prices of gram, sowing area of gram has increased by more than 30 percent.
–According to the data, the sowing of Rabi season has been done in 265 lakh hectare, which is 10 percent more
–Madhya Pradesh has recorded an increase of 5.4 lakh hectare in this season and 2.5 lakh hectare in Punjab as compared to the same period of the last Rabi.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4983.55 Rupees per 100 kgs.