Technically Chana market is under fresh buying as market has witnessed gain in open interest by 8.67% to settled at 105390 while prices up 18 rupees.

Now NCDEX Chana is getting support at 4890 and below same could see a test of 4858 levels, and resistance is now likely to be seen at 4974, a move above could see prices testing 5026.

Chana yesterday settled up by 0.37% at 4922 on short covering as several market committees of Maharashtra have stopped purchase and sale of commodities in protest against the government imposing stock limits on pulses.

Transactions at Latur, Amravati, Akola, Washim, Khamgaon and other major market committees in the Vidarbha and Marathwada regions have been hit as traders have stopped buying agricultural commodities indefinitely since Monday.

The Govt imposed stock limits on all pulses except moong for wholesalers, retailers, millers and importers, to bring down the prices of these items, which have risen in retail markets since March.

According to the order issued by the food ministry, valid until October 31, wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety. The stock limit for retailers has been fixed at 5 tonne.

For millers, the limit is total production during last three months or 25% of annual installed capacity, whichever is higher.

Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety (same as for wholesalers), for stocks held/imported before 15th May. In Delhi spot market, chana gained by 2.5 Rupees to end at 4800 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 4858-5026.
–Chana prices gained on short covering several market committees in Maharashtra shut in protest
–Wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety.
–Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety
–In Delhi spot market, chana gained by 2.5 Rupees to end at 4800 Rupees per 100 kgs.