Chana dropped Rs 3 and settled at Rs 3706 per quintal triggered by market talk a key producing state is likely to take measures to discourage hoarding. There are concerns that Rajasthan might cut the stock holding limit for pulses and other grains to help increase supplies and cool prices. The northwestern state is the country's second biggest producer of chana, or chickpea, and the leading supplier to New Delhi. Pulses prices have risen more than quarter since December in anticipation of a drop in output. Production of pulses in India is expected to fall by 5.3 percent to 17.28 million tonnes in the current crop year ending in June, according to the farm ministry. Lower production prospects for Pulses could support prices in medium to long term. As per reports from India Pulses and Grains Association, Pulses output is likely to fall to 17.5 MT vs 18.2 MT last year. The total daily arrivals of chana were hovering at the levels of around 3.10 lakh bags in the entire major mandis against 3.50 lakh bags on last day. In Delhi spot market, chana fell down by -32.95 rupee to end at 3536.75 rupee per 100 kgs. The volume was noted at 118370 lots. Support for chana is at 3683 below that could see a test of 3661. Resistance is now seen at 3748 above that could see a resistance of 3791.

Trading Ideas:

Chana  trading range for the day is 3661-3791.

Chana dropped triggered by market talk a key producing state is likely to take measures to discourage hoarding

Pulses prices have risen more than quarter since December in anticipation of a drop in output

NCDEX accredited warehouses chana stocks gained by 2586 tonnes to 24745 tonnes.

In Delhi spot market, chana fell down by -32.95 rupee to end at 3536.75 rupee per 100 kgs.