Technically Chana market is under short covering as market has witnessed drop in open interest by 1.16% to settled at 33330 while prices up 111 rupees.
Now NCDEX Chana is getting support at 4566 and below same could see a test of 4475 levels, and resistance is now likely to be seen at 4709, a move above could see prices testing 4761.
Chana yesterday settled up by 2.44% at 4656 on short covering after prices dropped as the arrival of new gram is increasing gradually in the producing states. Old gram selling remains normal, keeping prices under pressure.
In absence for the new crop, millers are buying gram as per need. During the Rabi season this year, about 112 lakh hectare area has been sown in the gram producing states, which was in 107.30 lakh hectare last year.
Weather friendly is likely to increase productivity. Prices are running lower than MSP. The challenge of buying gram will be in front of the government. Selling of chana at the port was seen better.
Chana arrivals are increasing in the mandis of Maharashtra. The pressure of new crop arrivals was seen on the markets. From next month, arrival of gram will also start in Rajasthan.
In Australia due to the growth in the sowing area and favorable conditions of weather and rainfall, during the current marketing season of 2020-21, there are signs of a significant increase in the production of all the major pulses including gram, lentils, peas and faba beans etc. This time harvesting and preparation of the crop started a little late.
As per sources except for parts of Queensland, all other major pulses growing areas of the country received good rainfall at the right time. In Delhi spot market, chana dropped by 35.4 Rupees to end at 4580.65 Rupees per 100 kgs.
Trading Ideas:
–Chana trading range for the day is 4475-4761.
–Chana prices gained on short covering after prices dropped as the arrival of new gram is increasing gradually in the producing states.
–In absence for the new crop, millers are buying gram as per need.
–Chana arrivals are increasing in the mandis of Maharashtra.
–In Delhi spot market, chana dropped by 35.4 Rupees to end at 4580.65 Rupees per 100 kgs.