MCX Mentha Oil under short covering; Support seen at 1271.5
MCX Aluminium may trade between 130.2-131.4 levels
MCX Nickel likely to move in a range of 1050.2-1099.2
MCX Zinc under fresh selling; Support seen at 186.5
MCX Copper under fresh selling; Support seen at 434.5
Chana on NCDEX settled up 1.68% at 6910 supported by strong demand at domestic spot market and restricted supplies from producing regions. Besides, expectations of lower output from the major producing belts too fuelled the uptrend. To control prices exchange has increase 10% special margin for the buy side.
Now the total additional and special margin increased to 55% for long side. Recently, government decided to hike the MSP for kharif pulses decided to give a bonus of Rs. 425 per quintal for pulses over and above the MSP for 2016-17 kharif season. The demand for chana will remain strong in coming months and most importers cutting their shipments on fear at center may impose stock limits to bring down prices.
Import price of chana has also been rising steadily with the landed cost increased by Rs 2,000 in 4 month. India imports more than 70 per cent of chana from Australia, which is proving very expensive. Chana imports into the country touched about 10.31 lt in the current financial year (2015-16), higher by 146% compared to previous FY 2014-15. Moreover, government initiative to check rising prices is restraining the uptrend.
To build a buffer stock in a bid to keep a check on prices and availability, government agencies have so far procured 51,000 tonnes of kharif and 60,000 tonnes of rabi pulses so far. Technically market is under fresh buying as market has witnessed gain in open interest by 2.6% to settled at 13800 while prices up 114 rupee, now Chana is getting support at 6791 and below same could see a test of 6671 level, and resistance is now likely to be seen at 7039, a move above could see prices testing 7167.
--Chana trading range for the day is 6671-7167.
--Chana prices gained supported by strong demand at domestic spot market and restricted supplies from producing regions.
--Prices have been surging higher on anticipation of supply crunch in coming months due to lower production and good demand.
--To control prices exchange has increase 10% special margin for buy side, now total margin increased to 55% for long side.
--In Delhi spot market, chana gained by 322.2 rupee to end at 7146.3 rupee per 100 kgs.Courtesy: Kedia Commodities