Chana regained the strength and settled 1.96% up on hopes of a rise in consumer demand during the approaching Ramadan festival and on fears that the below average monsoon rains could adversely impact pulses output in the country. Profit booking at higher levels can once again bring in corrections to the rising price, even as sentiments remained moderately bullish in the mandis. Delayed progress of Monsoon kept sentiments firm for many Agri commodities. With uncertainty still prevailing for the critical coming month of July, bullish trend is likely to persist for Chana in the near term as the sowing activities of the other Pulses like Tur and Urad would be affected leading to firmness in Pulses sector Short term sentiments would depend on the Monsoon progress as satisfactory rains in South would be good for other Pulses like Tur, Urad and Moong. Rising imports from Myanmar supported prices as import costs rise from firm Dollar and lower International production. Pulses output is expected to fall to 17.02mt vs 18.24mt in 2010-11. Chana production is expected to fall by 6.8% to 7.40mt 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. For today's session market is looking to take support at 4307, a break below could see a test of 4252 and whereas resistance is now likely to be seen at 4394, a move above could see prices testing 4426.

CHANA

Chana trading range for the day is 4246-4420.

Chana regained the strength and settled 1.96% up on hopes of a rise in consumer demand

Rising imports from Myanmar supported prices as import costs rise from firm Dollar.

Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12.

In Delhi spot market, chana jump up by 11.35 rupee to end at 4338 rupee per 100 kgs.

BUY CHANA JULY ABV4350 SL 4310 TGT 4380-4400. NCDEX