Technically Chana market is under short covering as market has witnessed drop in open interest by 5.17% to settled at 91000 while prices up 79 rupees.
Now NCDEX Chana is getting support at 5115 and below same could see a test of 5032 levels, and resistance is now likely to be seen at 5251, a move above could see prices testing 5304.
Chana yesterday settled up by 1.54% at 5198 as pulses crops in Maharashtra may be affected as these are grown mainly in Marathwada and Vidarbha regions where the monsoon rainfall so far was 59% and 11% above LPA, respectively.
The north parts of Karnataka, where pulses are grown, have received 71% above normal rains this season until July 24. Waterlogged field for a long time might cut yield, as pulses don’t need continuous rains.
Area under pulses continues to remain low in the current kharif season, raising the spectre of the government resorting to trade-restrictive measures like imposition of stock holding again in November-December to check of prices of these eatables.
The Centre reduced the import duty on masur dal to zero and also halved the Agriculture Infrastructure Development Cess on the lentil to 10 per cent, in a bid to boost domestic supply and check rising prices.
Support seen earlier in the day A rise in prices of pulses had forced the government to put stock limits on July 2, a step not in conformity with the free-trade concept embraced by it as it diluted the Essential Commodities Act in June 2020.
Last week, it eased the restrictions a bit due to traders’ protest. In Delhi spot market, chana gained by 32.25 Rupees to end at 5004.15 Rupees per 100 kgs.
--Chana trading range for the day is 5032-5304.
--Chana prices gained as pulses crops in Maharashtra may be affected
--The Centre reduced the import duty on masur dal to zero
--The north parts of Karnataka, where pulses are grown, have received 71% above normal rains this season until July 24.
--In Delhi spot market, chana gained by 32.25 Rupees to end at 5004.15 Rupees per 100 kgs.
Courtesy: Kedia Commodities