Technically Chana market is under short covering as market has witnessed drop in open interest by 3.18% to settled at 114110 while prices up 14 rupees.
Now NCDEX Chana is getting support at 5132 and below same could see a test of 5110 levels, and resistance is now likely to be seen at 5177, a move above could see prices testing 5200.
Chana yesterday settled up by 0.27% at 5153 as chana procurement has resumed in the state after remaining suspended for more than a month due to restrictions imposed by the government in view of the second wave of Covid-19 pandemic and inclement weather this month.
Support also seen as pulses acreage could witness a decline during the forthcoming kharif season after the Centre opened up imports of tur, urad and moong. Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category.
The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31, 2021. Further, import consignments of these items with Bill of Landing issued on or before October 31 shall not be allowed by Customs beyond November 30, the notification said.
“The Open General License (OGL) under the free import policy will enable the traders to quickly import the required quantity of tur, moong and urad to fulfil the shortage of the pulses.
We are expecting minimum 250,000 tonnes of tur, 150,000 tonnes of urad and around 50,000-75,000 tonnes of moong beans to be imported primarily from Myanmar, African, and the neighbouring countries.” In Delhi spot market, chana gained by 3.15 Rupees to end at 5086 Rupees per 100 kgs.
Trading Ideas:
–Chana trading range for the day is 5110-5200.
–Chana gained as chana procurement has resumed after remaining suspended for more than a month
–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.
–In Delhi spot market, chana gained by 3.15 Rupees to end at 5086 Rupees per 100 kgs.