NCDEX Chana under long liquidation; Support seen at 4087
Commodity Online | July 10 2020
UPDATED 12:10:54 IST

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Technically Chana market is under long liquidation as market has witnessed drop in open interest by 19.24% to settled at 14400 while prices down 30 rupees.

Now NCDEX Chana is getting support at 4087 and below same could see a test of 4069 levels, and resistance is now likely to be seen at 4134, a move above could see prices testing 4163.

Chana yesterday settled down by 0.73% at 4106 amidst improved arrivals in the domestic mandis and stagnant demand from millers. Prime Minister Narendra Modi announced extending PM Garib Kalyan Ann Yojana till November.

Initially the scheme was for three months ending June 30. Also, each poor household will get 1 kg of pulses per month free of cost. The government has procured over half of the targeted 2.2 mln tn of chana for 2020-21 (Apr-Mar) marketing year from nine states under price support scheme.

Under the price support scheme, the government's agencies procure crops at the minimum support price to arrest falling prices in physical markets. The procurement drive has benefited around 700,000 farmers under the price support scheme.

A week ago, the National Agricultural Cooperative Marketing Federation of India procured 1.56 mln tn chana from farmers in nine states, a government official said.

Over 693,000 tn of chana was procured from farmers in Madhya Pradesh, 128,000 tn in Andhra Pradesh, 102,000 tn in Karnataka, 432,000 tn in Rajasthan, 206,000 tn in Maharashtra, 103,000 tn in Gujarat, 48,000 tn in Telangana, 20,000 tn in Uttar Pradesh, and the rest in Haryana, the official said.

NAFED is procuring chana from growers at the minimum support price of 4,875 rupees per 100 kg after states requested the Centre to check the fall in prices, the official said.

Trading Ideas:
--Chana trading range for the day is 4069-4163.
--Chana prices dropped amidst improved arrivals in the domestic mandis and stagnant demand from millers.
--The government has procured over half of the targeted 2.2 mln tn of chana for 2020-21 (Apr-Mar) marketing year.
--NAFED is procuring chana from growers at the minimum support price of 4,875 rupees per 100 kg, the official said.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4103.35 Rupees per 100 kgs.

Courtesy: Kedia Commodities