NCDEX Chana under fresh selling; Support seen at 4100
Commodity Online | July 13 2020
UPDATED 12:10:32 IST

MCX Silver under fresh buying; Resistance seen at 71470

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MCX Mentha Oil likely to move in a range of 930.1-963.1

MCX Aluminium may trade between 138.9-147.9 levels

MCX Nickel likely to move in a range of 1023.1-1083.9

Technically Chana market is under fresh selling as market has witnessed gain in open interest by 9.47% to settled at 71680 while prices down 24 rupees.

Now NCDEX Chana is getting support at 4100 and below same could see a test of 4085 levels, and resistance is now likely to be seen at 4140, a move above could see prices testing 4165.

Chana yesterday settled down by 0.58% at 4116 amidst improved arrivals in the domestic mandis and stagnant demand from millers. Prime Minister Narendra Modi announced extending PM Garib Kalyan Ann Yojana till November.

Initially the scheme was for three months ending June 30. Also, each poor household will get 1 kg of pulses per month free of cost. The government has procured over half of the targeted 2.2 mln tn of chana for 2020-21 (Apr-Mar) marketing year from nine states under price support scheme.

Under the price support scheme, the government's agencies procure crops at the minimum support price to arrest falling prices in physical markets. The procurement drive has benefited around 700,000 farmers under the price support scheme.

A week ago, the National Agricultural Cooperative Marketing Federation of India procured 1.56 mln tn chana from farmers in nine states, a government official said.

Over 693,000 tn of chana was procured from farmers in Madhya Pradesh, 128,000 tn in Andhra Pradesh, 102,000 tn in Karnataka, 432,000 tn in Rajasthan, 206,000 tn in Maharashtra, 103,000 tn in Gujarat, 48,000 tn in Telangana, 20,000 tn in Uttar Pradesh, and the rest in Haryana, the official said.

NAFED is procuring chana from growers at the minimum support price of 4,875 rupees per 100 kg after states requested the Centre to check the fall in prices, the official said.

Trading Ideas:
--Chana trading range for the day is 4085-4165.
--Chana prices dropped amidst improved arrivals in the domestic mandis and stagnant demand from millers.
--The government has procured over half of the targeted 2.2 mln tn of chana for 2020-21 (Apr-Mar) marketing year.
--NAFED is procuring chana from growers at the minimum support price of 4,875 rupees per 100 kg, the official said.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4097.5 Rupees per 100 kgs.

Courtesy: Kedia Commodities