Technically Chana market is under short covering as market has witnessed drop in open interest by 5.27% to settled at 102550 while prices up 35 rupees.

Now NCDEX Chana is getting support at 4956 and below same could see a test of 4900 levels, and resistance is now likely to be seen at 5060, a move above could see prices testing 5108.

Chana yesterday settled up by 0.7% at 5013 as pulses crops in Maharashtra may be affected as these are grown mainly in Marathwada and Vidarbha regions where the monsoon rainfall so far was 59% and 11% above LPA, respectively.

The north parts of Karnataka, where pulses are grown, have received 71% above normal rains this season until July 24. Waterlogged field for a long time might cut yield, as pulses don’t need continuous rains.

Area under pulses continues to remain low in the current kharif season, raising the spectre of the government resorting to trade-restrictive measures like imposition of stock holding again in November-December to check of prices of these eatables.

The Centre reduced the import duty on masur dal to zero and also halved the Agriculture Infrastructure Development Cess on the lentil to 10 per cent, in a bid to boost domestic supply and check rising prices.

Support seen earlier in the day A rise in prices of pulses had forced the government to put stock limits on July 2, a step not in conformity with the free-trade concept embraced by it as it diluted the Essential Commodities Act in June 2020.

Last week, it eased the restrictions a bit due to traders’ protest. In Delhi spot market, chana dropped by 35.55 Rupees to end at 4889.45 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 4900-5108.
–Chana prices gained as pulses crops in Maharashtra may be affected
–The Centre reduced the import duty on masur dal to zero
–The north parts of Karnataka, where pulses are grown, have received 71% above normal rains this season until July 24.