Technically Chana market is under short covering as market has witnessed drop in open interest by 1.92% to settled at 120270 while prices up 57 rupees.

Now NCDEX Chana is getting support at 4841 and below same could see a test of 4777 levels, and resistance is now likely to be seen at 4950, a move above could see prices testing 4995.

Chana yesterday settled up by 1.18% at 4904 as Central Government has relaxed stock limits for Millers and wholesalers and exempted importers from the same. Area under sowing for Kharif Pulses Crop area covered is 10.56 lakh ha less compared to normal of corresponding week.

About 70.64 lakh ha area coverage has been reported compared to normal of corresponding week (81.20 lakh ha).

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. In Delhi spot market, chana gained by 20.95 Rupees to end at 4704.15 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 4777-4995.
–Chana gained as Central Government has relaxed stock limits for Millers and wholesalers and exempted importers from the same.
–Area under sowing for Kharif Pulses Crop area covered is 10.56 lakh ha less compared to normal of corresponding week.
–About 70.64 lakh ha area coverage has been reported compared to normal of corresponding week (81.20 lakh ha).
–In Delhi spot market, chana gained by 20.95 Rupees to end at 4704.15 Rupees per 100 kgs.