NCDEX Chana under short covering; Resistance seen at 4345

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Technically Chana market is under short covering as market has witnessed drop in by 2.25% to settled at 134340 while prices up 24 rupees.

Now NCDEX Chana is getting support at 4307 and below same could see a of 4285 , and resistance is now likely to be seen at 4345, a move above could see prices testing 4361.

Chana on NCDEX settled up by 0.56% at 4329 due to improvement in demand in may support price but there is ample supplies in . Chana prices also got support due to the estimation of lower output this year.

NAFED procured 762,781.46 tons of chana in Telangana, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Haryana, Karnataka and Gujarat under Price Support Scheme (PSS).

Chana output forecast revised slightly lower at 100.90 lakh tons in third  advance estimates compared to 103.2 lakh tons in second advance estimates by the government. 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 second advance estimate released by government, chana production estimate for 2018-19 is 10.32 million which is 8.10percent lower than the 4th advance estimate of 11.23 million of 2017-18.

Trading Ideas:
–Chana trading range for the day is 4285-4361.
–Chana settled up due to improvement in demand in physical market may support price but there is ample supplies in physical market.
–In 2018/19, chana output forecast at 103.2 lt in 2ndadvance estimated by Government, down 8% on year due to 10% less area.
–Chana output forecast revised slightly lower at 100.90 lakh tons in third  advance estimates compared to 103.2 lakh tons
–In Delhi spot market, chana gained  by 7.1 Rupees to end at 4260 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com