Fundamental Analysis

Sluggish demand from the domestic stockists coupled with comfortable stocks of chana will pressurize the prices in the short term.

Further, improved sowing of other pulses will pressurize the chana prices in the long term.

Up to June 4, 2010, pulses acreage has only gone up by only 0.15 lakh hectares(lha) from the same period last year to 0.954 (lha). Timely advancement of rains in the interior parts of India however will control prices from moving sharply above.

Overall Chana production for the year 2009-2010 is a bumper crop with good carryover stocks. Production of chana in 2009-2010 is estimated at 7.38 million tonnes as compared to 7.06 million tonnes in 2008-09. This will cap the upside in the long term (June onwards).

Technical Analysis

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

14-days RSI is at 38.8 and is in neutral region.

Outlook

Chana futures are likely to trade in sideways to down manner due to reduced demand from the domestic buyers. Prices in the short term (June) will depend on the arrivals from the mandis and demand from domestic market. In the long term (July onwards) prices may take cues from the prices of other pulses and demand from the domestic stockists.

Courtesy: Angel Commodities

Get geopolitical analysis to spot trends

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook