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Technically Chana market is under long liquidation as market has witnessed drop in open interest by 4.3% to settled at 26270 while prices down 33 rupees.
Now NCDEX Chana is getting support at 4236 and below same could see a test of 4194 level, And resistance is now likely to be seen at 4305, a move above could see prices testing 4332.
Chana on NCDEX settled down 0.77% at 4277 due to subdued demand and surplus supply hopes. However, downside seen limited amid fall in acreage this year due to unfavourable rainfall. New crop arrivals have already hit the markets of Karnataka and Andhra Pradesh due to which supplies are likely to increase.
The commerce ministry extended the import restrictions on peas for another three months till March 31 this year. Such measures help in curbing cheaper imports and boost local prices. The ministry has restricted imports of peas “for the period from January 1, 2019, to March 31, 2019,” the Directorate General of Foreign Trade (DGFT) said in a notice.
The last import restriction imposed in September for three months ends Monday. India is the largest producer of pulses in the world. The target for pulses production is 24 million tonne for 2018-19, marginally up from 23.95 million tonne in 2017-18.
Area under chana is lagging and supplies are dwindling in the country due to lower imports and good consumption. Chana acreage is at 83.7 lakh ha, down 13% compared to last year acreage as on 14-Dec as per govt data.
The govt have extend import curbs on all varieties of peas by 3 months until the end of December. Chana stocks are diminishing due to higher domestic consumption and lower imports of chana due to 60% import duty since March 2018.
Trading Ideas:
–Chana trading range for the day is 4194-4332.
–Chana dropped due to subdued demand and surplus supply hopes.
–New crop arrivals have already hit the markets of Karnataka and Andhra Pradesh due to which supplies are likely to increase
–NCDEX accredited warehouses Chana stocks dropped by 1117 tonnes to 13638 tonnes.
–In Delhi spot market, chana gained by 5.8 Rupees to end at 4272.4 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
