NCDEX Chana under long liquidation; Resistance seen at 4338

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Technically Chana market is under long liquidation as market has witnessed drop in by 2.68% to settled at 115270 while prices down 11 rupees.

Now NCDEX Chana is getting support at 4292 and below same could see a test of 4274 level, and resistance is now likely to be seen at 4338, a move above could see prices testing 4366.

Chana on NCDEX settled down 0.25% at 4309 on profit booking after prices gained 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 MT 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 4274-4366.
–Chana dropped on profit booking after prices gained due to the estimation of lower output this year.
–Chickpeas export from increased by 10 % to 27251 MT in June against May when it was registered at 24719MT.
–Even production is expected to increase by29.79 % to 3.66 lakh MT in 2019-20.
–In Delhi spot market, chana gained  by 12.45 Rupees to end at 4262.45 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com