Chana dropped Rs 38 and settled at Rs 3487 per quintal trigged by expectation of the arrivals during March period. Chana arrivals are likely to be peak during March-April and prices may drop during that period. Chana arrivals in Delhi improved to 50 trucks, after witnessing a consistent inflow of around 25 trucks for the last few days. However, most other mandies remain closed on account of local festivities and prices are likely to maintain a bearish undertone. According to the Ministry of Agriculture crop report, the total domestic Chana production in 2012 was reported at 76.60 lakh tonnes, down almost 5.26 % from 2011. This was mainly due to weak sowing acreage along with some crop damage in Maharashtra and Rajasthan. While overall pulses output is expected to fall by 5.26% to 17.29 million tonnes against 18.24 million tonnes in 2010-11. Moreover, steady prices of Chana in international market also made imported Chana costlier in domestic market as the spot prices of Australian Chana in Indian market were trading in the range of Rs 5200-5400 per quintal in 2012 before correcting to Rs 3800 per quintal at the end of the year. In Delhi spot market, chana fell down by -20.35 rupee to end at 3982.15 rupee per 100 kgs. The volume was noted at 28110 lots. Support for chana is at 3475 below that could see a test of 3463. Resistance is now seen at 3507 above that could see a resistance of 3527.

Trading Ideas:

Chana  trading range for the day is 3463-3527.

Chana dropped trigged by expectation of the arrivals during March period.

Chana arrivals are likely to be peak during March-April and prices may drop during that period.

NCDEX accredited warehouses chana stocks gained by 120 tonnes to 13072 tonnes.

In Delhi spot market, chana fell down by -20.35 rupee to end at 3982.15 rupee per 100 kgs.