Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 3 April 2013

Chana Chana gained Rs 42 and settled at Rs 3482 per quintal on value buying, supported by hopes of a pick-up in local demand ahead of the wedding season offsetting rising supplies from the new season crop. Chana continued to surge on good buying support. Fresh buying at the spot markets for the upcoming wedding season also lends support to the prices. Supplies from the new season crop have gained momentum from Madhya Pradesh, the largest producing state, while arrivals from Rajasthan and Maharashtra would pick up in the coming days. India has further extended a ban on export of pulses by a year to March 2014 to bolster supplies at home and keep a lid on local prices. Chana arrivals in the ready markets slipped as farmers eyed the weak prices. The Lawrence Road mandi in Delhi has witnessed an inflow of 25 trucks as compared to 50 trucks yesterday. Spot prices in ready market had slipped to around Rs 3300 per quintal- their one-year lows in last week before staging a 1% rebound in the yesterday's session. The prices are down around Rs 700 in last three months. The demand for other pulses is steady to firm and this might spill over to Chana even as the rabi crop arrivals extend their buoyancy in coming weeks. The overall scenario could still be dominated by the rise in rabi Chana crop. Chana acreage has increased to 94.78 lakh ha vs 89.92 lakh ha last year. Good weather conditions in growing areas in MP, Maharashtra and Rajasthan have been responsible for the improved productivity and production prospects. The volume was noted at 79290 lots. Support for chana is at 3452 below that could see a test of 3421. Resistance is now seen at 3501 above that could see a resistance of 3519.