Fundamental Analysis
Stockists buying may be initiated as the prices are quoting at lower levels. If, significant demand from the domestic market is there Chana prices may find support and strengthen. However, better production estimates of chana may cap the upside.
According to second advance estimates, another bumper crop of Chana is expected in the coming season due to increased acreage and favorable weather in key growing areas. This may cap the prices and selling is likely to be witnessed if prices touch resistance level at the futures.
Area under other Rabi pulses like Urad and moong is expected to be better according to the report on March 04, 2010. This may cap the upside in Chana prices.
Technical Analysis Prices on daily charts closed below its 10-days and its 20-days EMA, indicating downward trend.
14-days RSI is at 44.7 and is trading in sideways manner.
Outlook Chana futures are likely to trade in the sideways manner due to lack of fresh fundamentals to drive the prices. The output of other Pulses is estimated to remain unchanged and thus prices of these Pulses like Tur, Urad and Moong which had declined in the last few weeks will not fall much now onwards. Thus, tracking the other Pulses, we don’t expect much downside in the Chana prices till mid March. In the long term (April onwards),Chana prices are likely to trade with bearish sentiments once prices consistently trade below Rs.2000 levels as fresh arrivals from Rajasthan and MP coupled with estimates of higher production may pressurize the prices.
Courtesy: Angel Commodities
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