NCDEX Chana under long liquidation; Resistance seen at 4001

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Technically Chana market is under long liquidation as market has witnessed drop in by 0.7% to settled at 83390 while prices down 23 rupees.

Now NCDEX Chana is getting support at 3960 and below same could see a of 3942 levels, and resistance is now likely to be seen at 4001, a move above could see prices testing 4024.

Chana on NCDEX settled down by 0.57% at 3979 as a pickup in rainfall is being considered to be a positive factor for rabi sowing. The availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.

National Agricultural Co-operative Marketing Federation of Ltd (NAFED) is currently have stock of about 13 lakh tonnes of chana procured last year. Moreover, slow procurement progress by government for the new season crop is keeping stock levels higher with the farmers.

According to the fourth advance estimate, India Chana production of 2018-19 is estimated at 10.13 MMT which is 1 per cent higher than the third advance estimate of 10.09 MMT. Final production estimate of 2017-18 is 11.38 MMT.

This year production estimate is lower than last year due to lower acreage. All According to the latest report of ABARES, Australia chickpea acreage forecast for 2019-20 is 3.70 lakh hectares which in 22.11 per cent higher than 2018-19 acreage estimate of 3.03 lakh hectares.

Trading Ideas:
–Chana trading range for the day is 3942-4024.
–Chana prices dropped as a pickup in rainfall is being considered to be a positive factor for rabi sowing.
–The availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.
–NAFED is currently have stock of about 13 lakh tonnes of chana procured last year.
–In Delhi spot market, chana dropped  by 7.45 Rupees to end at 4000 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com