NCDEX Chana under fresh buying; Support seen at 4702

Technically Chana market is under fresh buying as market has witnessed gain in open interest by 0.79% to settled at while prices up 46 rupees.

Now NCDEX Chana is getting support at 4702 and below same could see a test of 4669 levels, and resistance is now likely to be seen at 4767, a move above could see prices testing 4799.

Chana yesterday settled up by 0.98% at 4735 after update NAFED to sell Gram PSS Rabi-2020stock from all the States at or above base prices of Rs. 5100 per quintal in the month of December 2020, it offers an initial quantity of 1.5 LMT of Gram, for the month of December 2020.

With this move Nafed seems in a hurry to sell stock from 2020 crop rather than to control fluctuations in the market by increasing or decreasing supply. Selling from all centers would increase supply further in the market.

Pressure continues on chana market as demand is weak after Diwali and supply from Nafed is likely to increase. Apart from this area is bound to increase by 5 to 7 % this year and weather is congenial to sowing everywhere except south Indian states.

Prices dropped around 20% in one month period as sowing of gram is higher than the total sowing of the previous year.

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. Chana sowing in Gujarat is heading towards a new record in the ongoing Rabi season as farmers have already planted the legume crop on 6.6 lakh hectares (lh).

Trading Ideas:
–Chana trading range for the day is 4669-4799.
–Chana prices gained after update NAFED to sell Gram PSS Rabi-2020stock from all the States at or above base prices of Rs. 5100 per quintal
–NAFED offers an initial quantity of 1.5 LMT of Gram, for the month of December 2020.
–Chana sowing in Gujarat is heading towards a new record as farmers have already planted the legume crop on 6.6 lakh hectares (lh).
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4655 Rupees per 100 kgs.