Chana gained Rs 25 and settled at Rs 3705 per quintal as traders continued bargain buying amidst moderate arrivals in the mandis. Short term trend looks volatile as moderate firmness is expected in medium term. Impositions of additional margins on the Buy side have been pressurizing the market sentiments in the short term even as long term remained firm on lower production estimates for Pulses. New crop arrivals have also added to the selling pressure in the short term. 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. A rise in imports to 3-3.5 MT expected could support prices in medium term. A weaker Re could make imports costly. Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Estimates. The total daily arrivals of chana were hovering at the levels of around 1.60 lakh bags in the entire major mandis against 2.35 lakh bags on last day. Arrivals in Rajasthan has began since last 2-3 weeks, however, the pace is very slow on account of sharp drop in yields and thereby output in Rajasthan, the second largest Chana producing state. In Delhi spot market, chana fell down by -7.2 rupee to end at 3576.85 rupee per 100 kgs. The volume was noted at 63640 lots. Support for chana is at 3686 below that could see a test of 3668. Resistance is now seen at 3724 above that could see a resistance of 3744.

Trading Ideas:

Chana  trading range for the day is 3669-3745.

Chana gained as traders continued bargain buying amidst moderate arrivals in the mandis

Arrivals in Rajasthan has began since last 2-3 weeks, however, the pace is very slow on account of sharp drop in yields

NCDEX accredited warehouses chana stocks gained by 3119 tonnes to 35681 tonnes.

In Delhi spot market, chana fell down by -7.2 rupee to end at 3576.85 rupee per 100 kgs.