Technically Chana market is under long liquidation as market has witnessed drop in open interest by 3.54% to settled at 82990 while prices down 86 rupees.
Now NCDEX Chana is getting support at 5019 and below same could see a test of 4983 levels, and resistance is now likely to be seen at 5113, a move above could see prices testing 5171.
Chana yesterday settled down by 1.67% at 5054 continuing its weak trend as India is likely to receive an average amount of rainfall in August and September, the state-run weather office said, raising expectations of higher crop yields in Asia’s third-biggest economy, which relies heavily on the vast farm sector.
“As per most parameters, we expect monsoon rains to be normal in August and September this year,” Mrutyunjay Mohapatra, Director General of the state-run India Meteorological Department (IMD), told a news conference.
All over Pulses crop area seen at about 108.87 lakh ha compared to normal of corresponding week (110.68 lakh ha). Thus 2.81 lakh ha less area has been covered compared to normal of corresponding week.
However downside seen limited 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.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. In Delhi spot market, chana dropped by 115 Rupees to end at 4981.65 Rupees per 100 kgs.
Trading Ideas:
–Chana trading range for the day is 4983-5171.
–Chana prices dropped continuing its weak trend as India is likely to receive an average amount of rainfall in August and September
–All over Pulses crop area seen at about 108.87 lakh ha compared to normal of corresponding week 110.68 lakh ha.
–The Centre reduced the import duty on masur dal to zero
–In Delhi spot market, chana dropped by 115 Rupees to end at 4981.65 Rupees per 100 kgs.