NCDEX Chana under fresh selling; Support seen at 4170
Commodity Online | August 23 2019
UPDATED 12:10:35 IST

MCX Mentha Oil likely to move in a range of 1257.9-1281.9

MCX Aluminium may trade between 138.2-140 levels

MCX Nickel under fresh buying; Support seen at 1232.4

NCDEX Chana under short covering; Resistance seen at 4076

MCX Zinc likely to move in a range of 181.2-187.6

Technically Chana market is under fresh selling as market has witnessed gain in open interest by 0.4% to settled at 113110 while prices down 34 rupees.

Now NCDEX Chana is getting support at 4170 and below same could see a test of 4149 levels, and resistance is now likely to be seen at 4225, a move above could see prices testing 4259.

Chana on NCDEX settled down by 0.8% at 4191 as millers are engaged in need based buying despite lower arrival in major markets. Likely commencement of selling in MP and UP may put further pressure on chana price.

Chana production has been pegged at 10.13 MMT against target of 11.50MMT for 2018-19. For 2017-18 final Chana production estimate has been fixed at 11.38 MMT. 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 attracts 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 second advance estimate released by the 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.

Chickpea area in Australia is expected to increase 22.11% from 303(2018-29) to 370 thousand ha in 2019-20. Even production is expected to increase by29.79 % to 3.66 lakh MT in 2019-20. It was 2.82 lakh MT in 2018-19.

Trading Ideas:
--Chana trading range for the day is 4149-4259.
--Chana settled down as millers are engaged in need based buying despite lower arrival in major markets.
--Likely commencement of selling in MP and UP may put further pressure on chana price.
--In 2018/19, chana output forecast at 103.2 lt in 2ndadvance estimated by Government, down 8% on year due to 10% less area.
--In Delhi spot market, chana dropped  by 36.8 Rupees to end at 4164.3 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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