NCDEX Chana under fresh buying; Support seen at 5056
Commodity Online | September 29 2020
UPDATED 12:10:07 IST

MCX Mentha Oil likely to move in a range of 926.7-944.5

MCX Cotton under short covering; Support seen at 19590

MCX Aluminium may trade between 150-153.8 levels

NCDEX Jeera under long liquidation; Resistance seen at 14010

MCX Nickel likely to move in a range of 1144-1196.2

Technically Chana market is under fresh buying as market has witnessed gain in open interest by 2.16% to settled at 63990 while prices up 40 rupees.

Now NCDEX Chana is getting support at 5056 and below same could see a test of 4984 levels, and resistance is now likely to be seen at 5175, a move above could see prices testing 5222.

Chana yesterday settled down by 0.65% at 5384 on profit booking after gained due to less imports, NAFED selling on higher prices and allocation of additional 3 lakh ton in buffer stock.

Improved demand from bulk buyers/stockiest following onset of the festival season amid lower supplies due to slack arrivals supported the market sentiments.

NAFED Chana sale at higher prices also supported the prices in Chana. NAFED sold out Chana in the range of Rs. 4901-5071/qtl.

During the last week of August spell of heavy rain damaged the Urad in central and western India. Excess rainfall in many of districts of Madhya Pradesh and some parts of Karnataka has led to stagnation of water in the fields of Moong and Urad causing damage to the crop.

As per 4th advance estimate released by the Ministry of Agriculture Chana production in 2019-20 has been estimated at 113.5 lakh tonnes which 14% higher than the production of 99.4 lakh tonnes in 2018-19.

Chana import for 2020-21 (Apr-May) stood at 0.06 lakh tonnes as against 0.50 lakh tonnes imported during the corresponding period of the previous year.

Import and export in month of May 2020 reported 0.06 lakh tonne and 0.56 lakh tonne respectively. After three years of drought, Australia will see its crop production spike in 2020-21, according to the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).

Trading Ideas:
--Chana trading range for the day is 5297-5527.
--Chana dropped on profit booking after gained due to less imports, NAFED selling on higher prices and allocation of additional 3 lakh ton in buffer stock.
--Improved demand from bulk buyers/stockiest following onset of the festival season amid lower supplies due to slack arrivals
--The consumption of gram has increased due to the inclusion of gram in the free grain distribution scheme started in the Corona period
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5300 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1.2 10450.00
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Arecanut 0.04 36000.00
Sugar 15 3460.00

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