NCDEX Chana under fresh selling; Support seen at 4355
Commodity Online | December 10 2019
UPDATED 12:10:15 IST

MCX Mentha Oil likely to move in a range of 967.8-1014.8

NCDEX Chana under fresh selling; Support seen at 4227

MCX Cotton under long liquidation; Support seen at 16230

MCX Aluminium may trade between 145.5-147.5 levels

MCX Nickel likely to move in a range of 1064.7-1102.5

Technically Chana market is under fresh selling as market has witnessed gain in open interest by 18.62% to settled at 43450 while prices down 84 rupees.

Now NCDEX Chana is getting support at 4355 and below same could see a test of 4319 levels, and resistance is now likely to be seen at 4455, a move above could see prices testing 4519.

Chana on NCDEX settled down by 1.88% at 4390 amid excess availability of stock with Nafed and private hands. Nafed is likely to start selling chana from mid-December in higher volume as new crop would be available by Feb end.

Rains in various parts of the country were observed even till end of the month causing delay in sowing activities of the Rabi season crops. Chana production is estimated at 101.3 Lakh tonnes during 2018- 19.

Production Estimate is 10.98% less than the estimate of 113.8 Lakh tonnes during 2017-18. Overall, pulses production is also estimated to decline by around 7.95% to 234 Lakh tonnes 2018-19 from 254.2 Lakh tonnes in the previous year.

As per market sources, Chana sown area might witness some improvement owing to good soil moisture due to prolonged monsoon rains in most part of India even till October end. However, at the same time, delay in sowing is also expected.

The increase in MSP for Rabi Crops for 2020- 21 is in line with the principle of fixing the MSPs at a level of at least 1.5 times of the all India weighted average cost of production, which was announced in the Union Budget 2018-19.

Trading Ideas:
--Chana trading range for the day is 4319-4519.
--Chana prices dropped amid excess availability of stock with Nafed and private hands.
--Nafed is likely to start selling chana from mid-December in higher volume as new crop would be available by Feb end.
--Rains in various parts of the country were observed even till end of the month causing delay in sowing activities of the Rabi season crops.
--In Delhi spot market, chana dropped  by 27.75 Rupees to end at 4276.25 Rupees per 100 kgs.

Courtesy: Kedia Commodities