NCDEX Chana may trade between 4471-4577 levels

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Technically NCDEX Chana is getting support at 4495 and below same could see a of 4471 level, And resistance is now likely to be seen at 4548, a move above could see prices testing 4577.

Chana on NCDEX settled down by 0.33% at 4520 on profit booking after prices gained in recent sessions due to strong buying by the government agencies and tight supply. NAFED procured 261,953.94 tons of gram in Telangana, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh and Gujarat under Price Support Scheme (PSS).

India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said, allowing overseas purchases. However, downside is limited as demand for gram is good in the spot market, while procurement by NAFED of fresh crop produce has lent support to the prices.

In 2018/19, chana output forecast at 103.2 lt in 2ndadvance estimated by Government, down 8% on year due to 10% less area. Currently, chana attract 60% import duty since Mar 2018 which restricted imports.

Chana, imports are down 85.1% to 1.43 lt in 2018/19 (Apr-Jan) compared to 9.58 lt last year, while exported are close to 2 lt of chana compared to 68,000 tonnes last year. According to the data, all India chana arrivals is reported at 1.53 lakh which is 15.46 per cent lower than the 1.81 lakh arrivals of chana in 2019.

According to latest report by NAFED, all India chana procurement for Rabi 2019 reached around 1.87 lakh MT. According to the second advance estimate released by government, chana production estimate for 2018-19 is 10.32 million MT which is 8.10percent lower than the 4th advance estimate of 11.23 million MT of 2017-18.

Trading Ideas:
–Chana trading range for the day is 4471-4577.
–Chana dropped on profit booking after prices gained in recent sessions due to strong buying by the government agencies and tight supply.
–NAFED procured 261,953.94 tons of gram in Telangana, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh and Gujarat under PSS
–India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said.
–In Delhi spot market, chana dropped  by 29.2 Rupees to end at 4410.8 Rupees per 100 kgs.

Courtesy: Kedia Commodities           

Source: Commodityonline.com