Chana gained Rs 7 and settled at Rs 4140 per quintal on value buying, following a recent fall in prices, and on a lack of fresh arrivals in spot markets. Chana, a winter sown crop, is planted in October-November and harvested in March-April, though unseasonal rains in April delayed harvesting this year. Domestic demand continued to remain good. Better Indian Food-grain production and in other items could prevent prices from rising a lot though. But expected fall in Pulses production could support Chana prices in medium term. As per 3rd Advanced Estimates. Pulses output is expected to fall to 17.02 mln tonnes vs 18.24 mln tonnes in 2010-11. Chana production is expected to fall by 6.8% to 7.40 mln tonnes as compared to 8.22 mln tonnes last year. As per Rajasthan farm department’s first advance estimates for Rabi crops, Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11. Output in Maharashtra in 2011-12 is seen down 42% at 7.5 lakh tn, while Karnataka’s 2011-12 output is seen at 4.98 lakh tn compared to 6 lakh tn last year. The total daily arrivals of chana were hovering at the levels of around 1.20 lakh bags in the entire major mandies, down 3000 bags from the last day. In Delhi spot market, chana jump up by 5.6 rupee to end at 4185.3 rupee per 100 kgs.. The volume was noted at 56050 lots. Support for chana is at 4113 below that could see a test of 4086. Resistance is now seen at 4169 above that could see a resistance of 4198.

Trading Ideas:

Chana  trading range for the day is 4086-4198.

Chana rose on value buying, following a recent fall in prices, and on a lack of fresh arrivals in spot markets

Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11.

NCDEX accredited warehouses chana stocks gained by 1704 tonnes to 78897 tonnes.

In Delhi spot market, chana jump up by 5.6 rupee to end at 4185.3 rupee per 100 kgs.