Technically Chana market is under long liquidation as market has witnessed drop in open interest by 6.32% to settled at 61780 while prices down 122 rupees.

Now NCDEX Chana is getting support at 5135 and below same could see a test of 5080 levels, and resistance is now likely to be seen at 5270, a move above could see prices testing 5350.

Chana yesterday settled down by 2.3% at 5189 as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases in the fourth quarter. Also from 15th August many states in India are facing long-awaited relaxations from Independence Day on Sunday.

Malls can now reopen, while restaurants, gyms, salons and spas are permitted to function at 50% capacity till 10pm, helping ease livelihoods.

Meanwhile support also seen after the release of all India pulses sowing data on Friday, revealed that all India, about 126.98 lakh ha area coverage has been reported compared to corresponding week’s 127.40 lakh ha.Thus 0.42 lakh ha less i.e 0.33% area has been covered compared to last year.

Last week PM Narendra Modi released the ninth installment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), enabling the transfer of more than Rs 19,500 crore to more than 9.75 crore beneficiaries which will raise the sentiments among the Farmers. In Delhi spot market, chana gained by 5.4 Rupees to end at 5317.9 Rupees per 100 kgs.

Trading Ideas:
–Chana trading range for the day is 5080-5350.
–Chana gained as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases
–The production of pulses has been increasing during the last three years and the target for 2021-2022 has been set at 23 LMT
–India is likely to receive an average amount of rainfall in August and September, the state-run weather office said
–In Delhi spot market, chana gained by 5.4 Rupees to end at 5317.9 Rupees per 100 kgs.