NCDEX Chana under long liquidation; Resistance seen at 5369
Commodity Online | October 23 2020
UPDATED 12:10:19 IST

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Technically Chana market is under long liquidation as market has witnessed drop in open interest by 3.72% to settled at 55590 while prices down 15 rupees.

Now NCDEX Chana is getting support at 5281 and below same could see a test of 5234 levels, and resistance is now likely to be seen at 5369, a move above could see prices testing 5410.

Chana yesterday settled down by 0.28% at 5327 as pressure seen after the central government has planned to introduce pulses from its buffer stock to the small retail market.

According to the Department of Consumer Affairs, five states have shown interest to purchase one lakh tonnes of pulses from the central buffer stock at MSP (Minimum Support Price).

While the crop is yet to arrive in the market, delay in issuing import licences by the central government has also pushed up prices. India allows import of 4 lakh tonnes (lt) of the pulse with the government normally allowing processors to complete imports before the arrival of the domestic crop.

The fate of moong, another major kharif pulse, is no different as reports of extensive damage to the crop have come in from various parts of the country. Like tur, the import quota for moong is yet to be released while its harvest season has started.

Quality concerns seem to be higher in moong than urad, which has fetched farmers higher than MSP (Rs 7,196 per quintal) for quality produce. As rains continue to batter parts of Maharashtra, Karnataka, Madhya Pradesh and Rajasthan, further downward revision in production is not ruled out.


Trading Ideas:
--Chana trading range for the day is 5234-5410.
--Chana prices dropped as pressure seen after the central government has planned to introduce pulses from its buffer stock to the small retail market.
--Five states have shown interest to purchase one lakh tonnes of pulses from the central buffer stock at MSP
--As rains continue to batter parts of Maharashtra, Karnataka, Madhya Pradesh and Rajasthan, further downward revision in production is not ruled out.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5200 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 0.4 10845.00
Coconut Oil 0.1 19100.00
Arecanut 277 40020.00
Rubber 0.3 15700.00

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