NCDEX Chana under long liquidation; Resistance seen at 5799
Commodity Online | April 20 2021
UPDATED 12:10:23 IST

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Technically Chana market is under long liquidation as market has witnessed drop in open interest by 2.72% to settled at 133870 while prices down 34 rupees.

Now NCDEX Chana is getting support at 5631 and below same could see a test of 5542 levels, and resistance is now likely to be seen at 5799, a move above could see prices testing 5878.

Chana yesterday settled down by 0.59% at 5721 on profit booking as demand gets affected amid rise in Covid cases after prices gained in recent session due to expectation of better demand during the upcoming festival season.

In addition, the government has initiated procurement at the minimum support price in major markets. Government agency Nafed has purchased 1.52 lakh tonnes of gram in Andhra Pradesh, Maharashtra, Madhya Pradesh, Telangana, Karnataka and Gujarat.

According to the second advance estimate of the Ministry of Agriculture, a record 116 million tonnes of gram production is expected in the 2020-21 season. As per Ministry of Agriculture data, chana sowing in this Rabi season crossed 112 lakh ha, which is up by about five per cent from same period last year.

Chana arrivals last month increased three-fold to 6.4 lakh tonnes. Depending on the new policy of government, the production of peas is expected to increase from 2 lakh tonnes to around 4.5 lakh tonnes.

Purchases were made by some big companies at the beginning of the season, but now their purchase has also stopped, the government should completely remove the MRP 200 rupees per kg condition for the next financial year. In Delhi spot market, chana dropped by 96.25 Rupees to end at 5703.75 Rupees per 100 kgs.

Trading Ideas:
--Chana trading range for the day is 5542-5878.
--Chana prices dropped on profit booking as demand gets affected amid rise in Covid cases after prices gained in recent session due to expectation of better demand
--In addition, the government has initiated procurement at the minimum support price in major markets.
--Purchases were made by some big companies at the beginning of the season, but now their purchase has also stopped
--In Delhi spot market, chana dropped by 96.25 Rupees to end at 5703.75 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 4.5 18600.00
Coconut Oil 10 20750.00
Tamarind Seeds 13 1340.00
Tamarind 15 5000.00

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