Technically Chana market is under long liquidation as market has witnessed drop in open interest by 9.5% to settled at 114280 while prices down 78 rupees.

Now NCDEX Chana is getting support at 5429 and below same could see a test of 5347 levels, and resistance is now likely to be seen at 5587, a move above could see prices testing 5663.

Chana yesterday settled down by 1.4% at 5512 on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year.

As on 23.04.2021, total summer crops have been sown on 73.76 lakh ha area against 60.67 lakh ha during the corresponding period of last year, thus increase in total summer area coverage by 13.09 lakh ha compared to corresponding period of last year in the country.

Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha.

Pressure also seen as demand gets affected amid rise in Covid cases after prices gained in recent session due to expectation of better demand during the upcoming festival season.

In addition, the government has initiated procurement at the minimum support price in major markets. Government agency Nafed has purchased 1.52 lakh tonnes of gram in Andhra Pradesh, Maharashtra, Madhya Pradesh, Telangana, Karnataka and Gujarat.

According to the second advance estimate of the Ministry of Agriculture, a record 116 million tonnes of gram production is expected in the 2020-21 season.

As per Ministry of Agriculture data, chana sowing in this Rabi season crossed 112 lakh ha, which is up by about five per cent from same period last year. In Delhi spot market, chana dropped by 176.35 Rupees to end at 5488.35 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 5347-5663.
–Chana prices fall on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year.
–Total summer crops have been sown on 73.76 lakh ha area against 60.67 lakh ha during the corresponding period of last year
–Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha.
–In Delhi spot market, chana dropped by 176.35 Rupees to end at 5488.35 Rupees per 100 kgs.