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Technically Chana market is under short covering as market has witnessed drop in open interest by 1.53% to settled at 40660 while prices up 34 rupees.
Now NCDEX Chana is getting support at 4242 and below same could see a test of 4192 level, And resistance is now likely to be seen at 4322, a move above could see prices testing 4352.
Chana on NCDEX settled up by 0.8% at 4292 on short covering after prices dropped due to weak demand and abundant supplies in the physical market. Area under chana is lagging and supplies are dwindling in the country due to lower imports and good consumption.
Chana acreage is at 91.6 lakh ha, down 10.6% compared to last year acreage. 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.
Chana exports from the country increased by 207% to 1.61 lt on year for Apr-Oct while imports down by 88% for same period. The National Agricultural Co-operative Marketing Federation of India Ltd (NAFED) continued to offload Chana in the physical markets.
NAFED sold 83,454 tons of gram in Andhra Pradesh and 42,049 tons in Telangana. Area under chana has decreased drastically in Maharashtra and Karnataka. Area under chana is lower by 11.32lakh ha so far on all India basis.
As season is heading towards an end now, any huge make up is unlikely now. Condition for rabi crop is not good and fear of lower rainfall is increasing for next kharif season. So, all pulses are likely to move up in the second half of the year. Farmers had covered over 100 lakh ha area last year.
Trading Ideas:
–Chana trading range for the day is 4192-4352.
–Chana gained on short covering after prices dropped due to weak demand and abundant supplies in the physical market.
–Area under chana is lagging and supplies are dwindling in the country due to lower imports and good consumption.
–NCDEX accredited warehouses Chana stocks dropped by 55 tonnes to 8850 tonnes.
–In Delhi spot market, chana dropped by 10.6 Rupees to end at 4168.15 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
