Technically Chana market is under long liquidation as market has witnessed drop in open interest by 10.76% to settled at 15920 while prices down 79 rupees.
Now NCDEX Chana is getting support at 4487 and below same could see a test of 4452 levels, and resistance is now likely to be seen at 4575, a move above could see prices testing 4628.
Chana yesterday settled down by 1.72% at 4521 as Govt has enough stocks to feed the market before new crop arrives in Feb.
Also the recent sharp fall in the prices attributed to government’s decision to not extend the free pulses distribution under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) beyond November 30.
The latest reports from Agricultural Ministry suggest that rabi acreage, was up 3.91%, with area under Chana or gram rose by 16.21% to 82.18 lh. The scheme for distributing 1 kg of pulses per month per household had covered 1.95 crore households under PMGKAY.
Chairman of India Pulses and Grains Association (IPGA), told that with completion of the free pulses scheme in November, the government is left with sufficient stocks before the new crop arrives in February 2021.
The government has stocks of about 10-12 lakh tonnes, which is sufficient to feed the market for two months before the new crop arrives. So the overall market sentiment changed totally within a short span.
The market participants suspect that the government will release this quantity with an open tender, thereby fuelling the supplies. there is not much of the floating stock — the stock that is available for trade with brokers — of chana available in the market.
–Chana trading range for the day is 4452-4628.
–Chana prices dropped as Govt has enough stocks before new crop arrives in Feb.
–The market participants suspect that the government will release this quantity with an open tender, thereby fuelling the supplies.
–With completion of the free pulses scheme in November, the government is left with sufficient stocks before the new crop arrives in February 2021.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4555 Rupees per 100 kgs.