Last Updated : February 09, 2010 11:40
Chana gains on buying at lower levels
Fundamental Analysis
Spot as well as futures market of Chana has improved during the last week due to improved buying at lower levels.
Chana futures had remained under pressure since last 2 month on reports of higher acreage under Rabi Pulses and huge carry forwards stocks of last year.
The acreage under pulses (gram, lentil, Urad, moong) has gone up by 7.8 lakh hectares compared to the same period last year to 137.35 lakh ha compared to only 129.55 lakh ha. Projections are that pulses acreage will meet last year’s levels, as would output.
Overall crop condition is reported normal and most of the pulses crops are in vegetable to pod formation stages and the kharif season arhar is reported in flowering to harvesting stages.
Prices of Tur and Urad have declined significantly in the past few weeks, however; no major downside is expected in the coming days.
Technical Analysis
14-days RSI is at 47.10 and is moving sideways. Chana contract closed above its 10 days EMA but below its 20 days EMA, indicating a sideways trend.
Closing above 20 Days EMA on daily charts may reverse the trend in the short term.
MACD has turned positive in the last 2 days.
Outlook Chana futures in the short term may trade range bound as lower level buying is seen offsetting the huge supplies in the Spot markets. If, weather conditions remain favorable in the key growing areas, we expect another bumper crop of Chana in the year 2010. Estimates of higher production along with the fresh arrivals (March onwards) may pressurize Chana prices in the first half of 2009.
Courtesy: Angel Commodities Explore CommodityOnline Mobile Services
MCX SOYABEAN 20 February 2012
contract was trading at
Rs 2475 . What's your view on it?
