Chana settled up 1.84% at 2939 on improved demand in domestic market while Madhya Pradesh variety traded steady. Domestic demand for the pea has improved due to the upcoming wedding season. Chana arrivals were steady at 40 trucks compared to previous day. Chana was sown over an area of 10.21 million hectare compared to 9.5 million hectare a year ago thanks to normal monsoon and good soil moisture. Agriculture ministry has estimated chana record output at 9.79 million ton up from 8.83 million ton a year ago. The spot market cues suggests that higher supplies of around 30-40 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. The prices will also be discouraged by steady supplies of inferior quality of chana in Madhya Pradesh. Most of the chana processing companies prefer inferior quality of chana over average quality. This has witnessed weak demand of new chana in local mandies. Government procurement has been started in Madhya Pradesh, Gujarat and Rajasthan in small quantities so far government has purchased 180 tons against the target of 2 million tons. In Delhi spot market, chana gained  by 27.35 rupee to end at 2850 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.76% to settled at 107650 while prices up 53 rupee, now Chana is getting support at 2895 and below same could see a test of 2851 level, And resistance is now likely to be seen at 2965, a move above could see prices testing 2991.

Trading Ideas:

Chana trading range for the day is 2851-2991.

Chana ended with gains on improved demand in domestic market while Madhya Pradesh variety traded steady.

Chana arrivals were steady at 40 trucks compared to previous day.

NCDEX accredited warehouses chana stocks gained by 58 tonnes to 115191 tonnes.

In Delhi spot market, chana gained  by 27.35 rupee to end at 2850 rupee per 100 kgs.