Chana gained Rs 16 and settled at Rs 4705 per quintal as farmers held back supplies on hopes of better prices in the festive season, but improved rains in leading pulses-cultivating states limited the upside. Supplies have been lower because farmers and traders are not bringing in their produce in the market as they are expecting better prices. Sources expect farmers to increase the area under chana cultivation in the season due to better prices and a revival in rains that would improve the soil moisture. Some of the leading chana-cultivating states such as Madhya Pradesh, Rajasthan, Karnataka and Andhra Pradesh have received good rains in the last few days. India Kharif pulses acreage has risen to 88.30 lakh ha, compared to 85.32 lak ha a week ago, according to Ministry of Agriculture. Kharif tur area 2012-13 is down by 0.6 lakh ha. to 31 lakh ha. as compared from 31.6 lakh ha. in last year and normal area of 34.1 lakh ha. at this time of the year. Kharif urad area 2012-13 is up by 0. 1 lakh ha. to 19.5 lakh ha. as compared from 19.4 lakh ha. in last year and normal area of 19.9 lakh ha. at this time of the year. The total daily arrivals were hovering at the levels of around 23000 bags in the entire major mandies, unchanged from the last day. In Delhi spot market, chana jump up by 63.75 rupee to end at 4857.5 rupee per 100 kgs. The volume was noted at 72360 lots. Support for chana is at 4684 below that could see a test of 4663. Resistance is now seen at 4735 above that could see a resistance of 4765.

Trading Ideas:

Chana trading range for the day is 4663-4765.

Chana ended up as farmers held back supplies on hopes of better prices in the festive season

Supplies have been lower because farmers and traders are not bringing in their produce in the market

NCDEX accredited warehouses chana stocks dropped by 724 tonnes to 59145 tonnes.

In Delhi spot market, chana jump up by 63.75 rupee to end at 4857.5 rupee per 100 kgs.