Technically Chana market is under long liquidation as market has witnessed drop in open interest by 14.26% to settled at 16050 while prices down 9 rupees.
Now NCDEX Chana is getting support at 4432 and below same could see a test of 4395 levels, and resistance is now likely to be seen at 4496, a move above could see prices testing 4523.
Chana yesterday settled down by 0.2% at 4468 after NAFED to sell Gram PSS Rabi-2020 stock from all the states at or above basis prices of Rs. 4875 /- per quintal. The latest data shows that the total area of pulses has increased by 7% to 141 lakh hectares.
More sowing is done in Maharashtra, Odisha and Jharkhand as compared to last year. Gram cultivation has increased by about 10%.
NAFED to sell Gram PSS Rabi-2020 stock 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. 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 4395-4523.
–Chana dropped after NAFED to sell Gram PSS Rabi-2020 from all the states
–The latest data shows that the total area of pulses has increased by 7% to 141 lakh hectares.
–More sowing is done in Maharashtra, Odisha and Jharkhand as compared to last year.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4480 Rupees per 100 kgs.