Technically Chana market is under long liquidation as market has witnessed drop in open interest by 5.82% to settled at 107590.
Now NCDEX Chana is getting support at 4190 and below same could see a test of 4133 level, And resistance is now likely to be seen at 4294, a move above could see prices testing 4341.
Chana on NCDEX settled flat due to decision of selling by Nafed in Maharashtra. Pressure also seen due to surge in chana supplies in the physical markets due to fresh crop arrivals.
Chana supplies are expected to increase in spot market as government agencies which is holding major portion of chana may auction at or above MSP of Rs 4,600 per 100 kg will stabilize prices near MSP.
India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said, allowing overseas purchases. In 2018/19, chana output forecast at 103.2 lt in 2ndadvance estimated by Government, down 8% on year due to 10% less area.
Currently, chana attract 60% import duty since Mar 2018 which restricted imports. Chana, imports are down 85.1% to 1.43 lt in 2018/19 (Apr-Jan) compared to 9.58 lt last year, while exported are close to 2 lt of chana compared to 68,000 tonnes last year.
According to the data, all India chana arrivals is reported at 1.53 lakh MT which is 15.46 per cent lower than the 1.81 lakh MT arrivals of chana in April 2019. According to latest report by NAFED, all India chana procurement for Rabi 2019 reached around 1.87 lakh MT.
According to the second advance estimate released by government, chana production estimate for 2018-19 is 10.32 million MT which is 8.10percent lower than the 4th advance estimate of 11.23 million MT of 2017-18.
--Chana trading range for the day is 4133-4341.
--Chana settled flat due to decision of selling by Nafed in Maharashtra.
--Chana prices dropped due to surge in chana supplies in the physical markets due to fresh crop arrivals.
--India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said.
--In Delhi spot market, chana dropped by 1.3 Rupees to end at 4211.45 Rupees per 100 kgs.
Courtesy: Kedia Commodities