Technically Chana market is under fresh buying as market has witnessed gain in open interest by 0.35% to settled at 124110 while prices up 3 rupees.

Now NCDEX Chana is getting support at 4767 and below same could see a test of 4722 levels, and resistance is now likely to be seen at 4841, a move above could see prices testing 4870.

Chana yesterday settled up by 0.06% at 4813 reovered from lows on short covering after pressure seen as 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.

However, this same stock limit will be applicable on importers after 45 days from date of customs clearance for stocks imported after May 15. Besides, in order to enhance domestic availability, ban on import of tur, urad and moong was lifted for the period between May 15 and October 31.

The government also signed a 5-year agreement with Myanmar for annual import of 2.5 lakh tonne of urad and 1 lakh tonne of tur. In Delhi spot market, chana dropped by 8.35 Rupees to end at 4691.65 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 4722-4870.
–Chana recovered from lows after pressure seen as the Govt imposed stock limits on all pulses except moong
–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 dropped  by 8.35 Rupees to end at 4691.65 Rupees