Chana dropped Rs 35 and settled at Rs 3153 per quintal on increased supplies from southern states in spot markets and on tepid demand in spot markets.
Recent decline in temperature and rains in Rajasthan, the country's second largest grower, is good for the crop and has raised hopes of good crop.
Chana arrivals have started in southern states such as Andhra Pradesh, Karnataka and western Maharashtra and are expected to pick up in the next few weeks.
Chana arrivals in spot markets rose to 20,000 bags of 100 kg each from around 10,000 bags in previous.
As per IPGA latest reports, Pulses production during current fiscal is expected to fall by 5-7% from 18.3 million tonnes in 2010-11 due to inadequate rains in some growing areas.
Overall trend expected to remain volatile for Chana in the short term as moderate arrivals and slight fall in demand could limit the uptrend.
As per latest data from Ministry of Agriculture as on 2nd Dec, 2011 the sown area under Chana (Gram) crop is up by 2.03 lakh hectares at 75.95 lakh ha vs same period last year.
In Delhi spot market, chana fell down by -13.35 rupee to end at 3236.65 rupee per 100 kgs.
The volume was noted at 62650 lots. Support for chana is at 3131 below that could see a test of 3110.
Resistance is now seen at 3185 above that could see a resistance of 3218.
Trading Ideas:
Chana trading range is 3110-3218.
Chana dropped on increased supplies from southern states in spot markets and on tepid demand
Chana arrivals in spot markets rose to 20,000 bags of 100 kg each from around 10,000 bags in previous
NCDEX accredited warehouses chana stocks dropped by 200 tonnes to 31163 tonnes.
In Delhi spot market, chana fell down by -13.35 rupee to end at 3236.65 rupee per 100 kgs.
Courtesy: Kedia Commodities
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