NCDEX Chana under fresh buying; Resistance seen at 4302

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Technically Chana market is under fresh buying as market has witnessed gain in open interest by 6.98% to settled at 119620 while prices up 25 rupees.

Now NCDEX Chana is getting support at 4229 and below same could see a of 4188 level, and resistance is now likely to be seen at 4302, a move above could see prices testing 4334.

Chana on NCDEX settled up 0.59% at 4269 due to the estimation of lower output this year. Festive demand is still awaited. As per market sources some importers have struck deal of kabuli chana at $ 400 per basis CnF (Nhava Sheva port) from Black Sea region.

The quantity in question is said to be 1000 MT.At port Kabuli chana from other origin is quoted at $695-700 per MT. 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 attracts 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 the 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 4188-4334.
–Chana prices ended with gains due to the estimation of lower output this year.
–Chickpea area in is expected to increase 22.11% from 303(2018-29) to 370 thousand ha in 2019-20.
–Even production is expected to increase by29.79 % to 3.66 lakh MT in 2019-20.
–In Delhi spot market, chana gained  by 6.65 Rupees to end at 4150 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com