NCDEX Chana under fresh buying; Support seen at 5442
Commodity Online | May 11 2021
UPDATED 12:10:25 IST

NCDEX Chana may trade between 4983-5289 levels

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Technically Chana market is under fresh buying as market has witnessed gain in open interest by 12.79% to settled at 135610 while prices up 95 rupees.

Now NCDEX Chana is getting support at 5442 and below same could see a test of 5373 levels, and resistance is now likely to be seen at 5570, a move above could see prices testing 5629.

Chana yesterday settled up by 1.75% at 5511 on expectations of better demand during the forthcoming festival season amid lower inventories.

Support also seen as the concern of unseasonal rain in the early part of this year has stoked up crop damage fears in some of the northern states.

In addition, the government has spruced up procurement through minimum support price as higher arrivals at major markets have pulled down spot prices below the ?5,100 per quintal. Chana arrivals last month increased three-fold to 6.4 lakh tonnes.

The government agency Nafed is learnt to have procured 1.24 lakh tonnes of chana in Andhra Pradesh, Maharashtra, Madhya Pradesh, Telangana, Karnataka and Gujarat. As per Ministry of Agriculture data, chana sowing in this Rabi season crossed 112 lakh ha, which is up by about five per cent from same period last year.

The second advance estimates of Ministry of Agriculture pegs chana production at a record high of 116 lakh tonnes in 2020-21 season (111 lakh tonnes). In Delhi spot market, chana gained by 81.95 Rupees to end at 5500 Rupees per 100 kgs.

Trading Ideas:
--Chana trading range for the day is 5373-5629.
--Chana gained on expectations of better demand amid lower inventories.
--Support also seen as the concern of unseasonal rain in the early part of this year has stoked up crop damage fears in some of the northern states.
--In addition, the government has spruced up procurement through minimum support price.
--In Delhi spot market, chana gained by 81.95 Rupees to end at 5500 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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