Chana gained Rs 18 and settled at Rs 3680 per quintal on short covering amid expected rise in demand in coming weeks, also reports of lower global production for Pulses likely to keep trend firm for the Indian markets also. The demand that had been rising over last few weeks got adversely affected at these higher levels but an expected rise in demand in coming weeks is not ruled out. During morning hours ~50 motors arrival was seen in Lawrence Road mandi while demand was noted ~40 motors. The total daily arrivals of chana were at around 0.40 lakh bags in all the major mandies. Increased supply from Madhya Pradesh and Rajasthan also put pressure on Chana prices. Prospects for Rabi Pulses like Chana and Peas are better owing to better soil moisture levels, which may increase the overall output in 2011-12 season and may put downside pressure on the prices in the long term. In Delhi spot market, chana jump up by 68.85 rupee to end at 3648.85 rupee per 100 kgs. The volume was noted at 186660 lots. Support for chana is at 3651 below that could see a test of 3623. Resistance is now seen at 3694 above that could see a resistance of 3709.

Trading Ideas:

Chana trading range is 3619-3705.

Chana gained on short covering amid expected rise in demand in coming weeks

Increased supply from Madhya Pradesh and Rajasthan also put pressure on Chana prices.

NCDEX accredited warehouses chana stocks dropped by 350 tonnes to 162034 tonnes.

In Delhi spot market, chana jump up by 68.85 rupee to end at 3648.85 rupee per 100 kgs.