Technically Chana market is under long liquidation as market has witnessed drop in open interest by 4% to settled at 127780 while prices down 2 rupees.
Now NCDEX Chana is getting support at 5004 and below same could see a test of 4975 levels, and resistance is now likely to be seen at 5051, a move above could see prices testing 5069.
Chana yesterday settled down by 0.04% at 5032 on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year. However there is a strong possibility of shortage in pulses production, especially due to uncertainty over sowing this crop year due to the pandemic.
The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses. There could be a shortage of around 10 lakh tonne in the production of tur this year. As the apex body for the trade, IPGA is bringing it to the notice of the government well in advance to augment the supply side.
However, as per trade estimates, the production for tur has been around 2.90 million tonne, urad approximately 2.06 million tonne, moong around 2 million tonne, Chana around 9 million tonne and masoor around 0.95 million tonne.
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. In Delhi spot market, chana dropped by 0.05 Rupees to end at 4986.1 Rupees per 100 kgs.
Trading Ideas:
–Chana trading range for the day is 4975-5069.
–Chana dropped on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year.
–The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses.
–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
–In Delhi spot market, chana dropped by 0.05 Rupees to end at 4986.1 Rupees per 100 kgs.