Technically Chana market is under long liquidation as market has witnessed drop in open interest by 21.21% to settled at 20400 while prices down 191 rupees.
Now NCDEX Chana is getting support at 4533 and below same could see a test of 4477 levels, and resistance is now likely to be seen at 4701, a move above could see prices testing 4813.
Chana yesterday settled down by 4% at 4589 due to the rise in pulses sowing and increase in sowing areas due to the necessary moisture in the soil along with rainfall in major producing states.
In Gujarat, the sowing of pulses, mostly gram, has crossed 4.07 lakh hectare this year, about 27% more than the normal 3.19 lakh hectare, and almost four times more than last year’s 1.05 lakh hectare.
In Rajasthan, the area under gram is 16.75 lakh hectare as compared to 15.57 lakh hectare at the same time last year. North Madhya Pradesh, Gwalior and Chambal divisions received good rains and the Bundelkhand region of the state has also been sowing pulses.
Production of the five main pulses grown in Australia ended up at 2.87 million metric tons (MT) this year, up over one million tons from last year and almost equal to the previous five year average.
ABARES said, “Winter crop production in Australia was boosted by very favorable seasonal conditions during spring in most cropping regions in New South Wales, Victoria and South Australia.
Crops in these states were generally in very good condition at the end of winter and favorable rainfall during September and October increased soil moisture levels during the critical grain development period.
Trading Ideas:
–Chana trading range for the day is 4477-4813.
–Chana dropped due to the rise in pulses sowing and increase in sowing areas due to the necessary moisture in the soil.
–In Gujarat, the sowing of pulses, mostly gram, has crossed 4.07 lakh hectare this year, about 27% more than the normal 3.19 lakh hectare
–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 4650 Rupees per 100 kgs.