Technically Chana market is under long liquidation as market has witnessed drop in open interest by 2.2% to settled at 62640 while prices down 2 rupees.
Now NCDEX Chana is getting support at 5057 and below same could see a test of 5026 levels, and resistance is now likely to be seen at 5132, a move above could see prices testing 5176.
Chana yesterday settled down by 0.82% at 5089 on profit booking after prices rallied due to lack of stock and increasing demand for pulses and gram flour in the festive season, the price of gram has risen strongly.
The traders have cast doubt on the official estimate of the production of gram in the last Rabi season. In the third advance production estimate for the crop year 2019-20 (July-June) released in the month of May by the Union Ministry of Agriculture and Farmers Welfare, 109 million tonnes of gram production was estimated in the country.
In addition, the consumption of gram has increased due to the inclusion of gram in the free grain distribution scheme started in the Corona period.
The demand for gram flour in gram flour increased due to the cost of peas, and to meet the demand of pulses and gram flour in the festive season, the purchase of mills in gram is going fast.
With the economy coming out of lockdown, consumption is likely to increase and prices are also rising due to festive season demand. Arrival of dollar chana in mandis across Madhya Pradesh today was recorded at 7,000 bags against 1,500 bags in Indore mandis.
--Chana trading range for the day is 5026-5176.
--Chana dropped on profit booking after prices rallied due to lack of stock and increasing demand for pulses and gram flour
--The rise in prices is a major reason for the reduction in production estimates.
--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 5025.7 Rupees per 100 kgs.
Courtesy: Kedia Commodities