NCDEX Chana under fresh buying; Support seen at 4572

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Technically Chana market is under fresh buying as market has witnessed gain in open interest by 11.06% to settled at 28730 while prices up 11 rupees.

Now NCDEX Chana is getting support at 4572 and below same could see a of 4533 level, And resistance is now likely to be seen at 4642, a move above could see prices testing 4673.

Chana on NCDEX settled up by 0.24% at 4611 on short covering after prices dropped amid rise in supply following higher stocks with National Agricultural Cooperative Marketing Federation of Ltd (NAFED).

However, farmers are not ready to sow pulses this year due to insufficient procurement by government and weak prices for pulses. Chana was sown on 6.265 million hectares as on Nov 22 compared to 7.198 million hectares in the same period a year ago, according to the data from the Ministry of Agriculture.

Meanwhile, stocks of chana in are lower as government extended the import restriction till December. The government raised the import duty to 60% from 40% on chana in March this year to restrict cheaper imports and to help farmers following a record harvest.

Year to date chana gained over 19%, and on Nov 21, the commodity touched a high of 4,791 per quintal — its highest level since Nov 28, 2017 due to import curbs and lower acreage. Nafed sold 55,100 tons of gram in Andhra Pradesh while in Telangana the agency sold 27,301 tons.

The cooperative firm released 83,750 tons and 30,497.01 tons of chana in Karnataka and Maharashtra while in Gujarat, Madhya Pradesh and Rajasthan the agency sold 37,906 tons, 10,920 tons and 47,717 tons, respectively.Chana stocks are diminishing due to higher domestic consumption and lower imports of chana due to 60% import duty since March 2018.

Trading Ideas:
–Chana trading range for the day is 4533-4673.
–Chana Chana settled up on short covering after prices dropped amid rise in supply following higher stocks with NAFED
–However, farmers are not ready to sow pulses this year due to insufficient procurement by government and weak prices for pulses.
–NCDEX accredited warehouses Chana stocks dropped by 2933 tonnes to 10265 tonnes.
–In Delhi spot market, chana droppedĀ  by 20.7 Rupees to end at 4479.3 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com