Technically Chana market is under long liquidation as market has witnessed drop in open interest by 3.28% to settled at 83640 while prices down 43 rupees.

Now NCDEX Chana is getting support at 5184 and below same could see a test of 5151 levels, and resistance is now likely to be seen at 5269, a move above could see prices testing 5321.

Chana yesterday settled down by 0.82% at 5216 on profit booking after prices seen supported as India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes due to low carryout and very poor production prospects for all of India’s rabi (winter) season crops.

Exports will fall to an estimated 50,000 tonnes, down from 115,000 tonnes each of the previous two years. The situation is so dire that India is expected to import 50,000 tonnes from Canada, Argentina and Turkey.

Even with that injection of supplies, India will end the year with 36,000 tonnes of kabulis, which is a far cry from the 200,000 tonnes it needs to balance supply and demand the following year.

According to the latest forecast of the Ministry of Agriculture of India, the forecast for lentils production estimate has been decreased from 13.50 to 12.60 lakh MT.

Govt increased Bengal Gram production by 10 lakh MT to 126.1 lakh MT. For tur, it is 41.40 lakh MT, Urad at23.70 lakh MT, Masur at 12.60 lakh MT, Masur production estimate has been decreased from 13.50 to 12.60 lakh MT.

Trades are of the view that Bengal Gram production estimate is very optimistic. In Delhi spot market, chana gained by 13.6 Rupees to end at 5227.25 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 5151-5321.
–Chana dropped on profit booking after prices seen supported as India’s supply of Kabuli chickpea is expected to plunge 32 percent
–Even with that injection of supplies, India will end the year with 36,000 tonnes of kabulis, which is a far cry from the 200,000 tonnes it needs
–Govt. raised Bengal Gram production estimate by 10 lakh mt to 12.61 lakh mt for 2020-21
–In Delhi spot market, chana gained by 13.6 Rupees to end at 5227.25 Rupees per 100 kgs.