Chana yesterday settled up 0.13% at 3168 as short covering and improved demand supported the sentiments. It is to be noted that reports of good monsoon is pressuring the sentiments as rains have ensured for good sowing prospects. However, raising of MSP in Tur and Moong could ensure further rise in sowing area for these crops. Any major rise in chana prices is expected to be from August this year as demand for chana will likely to increase with the onset of festive season. Demand is not improving as expected due to supply pressure, mainly from Rajasthan. Ongoing sowing activities in summer-sown pulses are also weighing on sentiment. Support price for tur has been raised by 450 rupees to 4,300 rupees per 100 kg, moong by 100 rupees to 4,500 rupees per 100 kg while urad has been kept unchanged at 4,300 rupees per 100 kg. Chana sowing for the current kharif season is expected to go up on good monsoon rain fall. Sowing for kharif pulses crop commenced and 3.74 lakh hectares (ha) of land has been covered. The area under sown is higher when compared to the normal sowing of 1.22 lakh ha. Last year, deficient rains adversely affected the sowing process of chana for kharif crop. The sowing was down by 16 percent. In Delhi spot market, chana gained by 3 rupee to end at 3115 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.8% to settled at 146900 while prices up 4 rupee, now Chana is getting support at 3156 and below same could see a test of 3143 level, And resistance is now likely to be seen at 3185, a move above could see prices testing 3201.

Trading Ideas:

Chana trading range for the day is 3145-3203.

Chana ended with gains as short covering and improved demand supported the sentiments.

The area under sown is higher when compared to the normal sowing of 1.22 lakh ha.

NCDEX accredited warehouses chana stocks gained by 956 tonnes to 142815 tonnes.

In Delhi spot market, chana gained by 2.5 rupee to end at 3115 rupee per 100 kgs.