Chana gained Rs 28 and settled at Rs 3424 per quintal on short-covering, supported by some recovery in spot prices, though supplies from the new season crop and expectations of a rise in output capped the gains. The new season supplies have started coming in from Andhra Pradesh, Karnataka and Maharashtra, and are likely to rise in the coming weeks. Chana arrivals dropped yet again, continuing the flip-flop movement in last few days. The effect of clear skies and slightly warm weather had supported Chana arrivals. However, the total arrivals of Chana in Delhi's Lawrence Road mandi fell to 20 trucks, off the 35 trucks yesterday and nearing their seasonal lows. The ready crop is in good shape and the recent weather patterns are unlikely to have a major impact on yields. The arrivals in MP are expected to gain strength in coming days and selling pressure is increasing in mandies in Maharashtra too. Sown area for Chana has reportedly increased to 94.78 lakh ha vs 89.92 lakh ha in corresponding periods which will help to increase the production. Good weather conditions in growing areas of India's Madhya Pradesh, Maharashtra and Rajasthan have been responsible for the improved productivity and production prospects. In Delhi spot market, chana jump up by 5.7 rupee to end at 3565.4 rupee per 100 kgs. The volume was noted at 37310 lots. Support for chana is at 3406 below that could see a test of 3388. Resistance is now seen at 3437 above that could see a resistance of 3450.

Trading Ideas:

Chana trading range for the day is 3388-3450.

Chana rose on short-covering, supported by some recovery in spot prices, though supplies from new season crop capped gains.

The effect of clear skies and slightly warm weather had supported Chana arrivals.

Chana arrivals dropped yet again, continuing the flip-flop movement in last few days.

In Delhi spot market, chana jump up by 5.7 rupee to end at 3565.4 rupee per 100 kgs.