Now NCDEX Chana is getting support at 4633 and below same could see a test of 4598 levels, and resistance is now likely to be seen at 4704, a move above could see prices testing 4740.
Demand of chana has witnessed growth Post Covid due increasing consumer preference for protein food, major demand coming from Saudi Arabia and Thailand.
However upside seen limited due to fresh arrivals and expectation of increased supplies than the previous season. Also, the inventory held by stockiest seems reasonable enough to balance the consumption till the new season supply is available.
Sowing area has also increased in Australia due to favorable condition of weather that is giving sign of a significant increase in the production of chickpeas.
Meanwhile the exports of Chickpeas from Australia gathered momentum in November 2020 as compared to previous year, and net shipments had reached 74000 MT versus 40,000 MT in November 2019.
Chana 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. In Delhi spot market, chana dropped by 35.4 Rupees to end at 4640 Rupees per 100 kgs.
Trading Ideas:
–Chana trading range for the day is 4598-4740.
–Chana price gained as MP Government procurement may increase if prices remain below MSP.
–NAFED withholding its sale tenders of Chana is also providing support to Chana prices
–However upside seen limited due to fresh arrivals and expectation of increased supplies than the previous season.
–In Delhi spot market, chana dropped by 35.4 Rupees to end at 4640 Rupees per 100 kgs.