Fundamental Analysis

Chana futures gained from the lows of Rs.2,188 and settled higher at Rs. 2208 per qtl levels on expectation of revival in demand ahead of festive season from the domestic stockists.

Overall, improved acreage towards other pulses and therefore improved production due to adequate rainfall in the food belt of India (Central India) will limit the gains.

In long term (November onwards), bumper crop of Chana in the year 2009-2010 coupled with good carryover stocks will resist prices from trading higher. Prices will also take cues from price quotes of other major pulses.

Spread between September and October contract is at Rs.66 as compared to Rs.64 in the previous day.

Technical Analysis

Prices on daily charts closed below its 10-days and its 20- days EMA, indicating bearish trend.

14-days RSI is at 39.39 and is in the neutral region.

Outlook

Chana futures are expected to remain firm in the coming days on hopes of revival in demand ahead of festival season. However, in the short term prices may again decline due to better stocks from last year’s bumper crop. In the medium to long term (October onwards) Chana prices may take cues from the prices of other pulses and sowing progress of Chana in the major growing areas.

Courtesy: Angel Commodities

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