NCDEX Chana likely to trade between 4577-4689 levels

Technically Chana market is under short covering as market has witnessed drop in open interest by 0.74% to settled at 30830 while prices up 36 rupees.

Now NCDEX Chana is getting support at 4611 and below same could see a test of 4577 levels, and resistance is now likely to be seen at 4667, a move above could see prices testing 4689.

Chana yesterday settled up by 0.78% at 4645 as chana growers are worried of non-realisation of the MSP. In Maharashtra, the bigger concern for farmers is now the fate of their chana crop as the pulse continues to rule below its MSP of Rs 5,100 per quintal.

The government should speed up its plans for chana procurement, otherwise the farmers will not realise the MSP.

The Centre allocated around 121 lakh metric tonnes (LMT) of free foodgrain under PMGKAY-I (Pradhan Mantri Garib Kalyan Anna Yojana) at the financial cost of around Rs 46,061 crore, Union Minister of State for Consumer Affairs, Food and Public Distribution.

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. In Delhi spot market, chana dropped by 35.4 Rupees to end at 4595 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 4577-4689.
–Chana prices gained as chana growers are worried of non-realisation of the MSP.
–In Maharashtra, the bigger concern for farmers is now the fate of their chana crop as the pulse continues to rule below its MSP of Rs 5,100 per quintal.
–Centre distributed free foodgrains, pulses, chana worth Rs 1.38 lakh crore during COVID-19
–In Delhi spot market, chana dropped by 35.4 Rupees to end at 4595 Rupees per 100 kgs.