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NCDEX Chana under short covering; Resistance seen at 4076
Commodity Online | September 20 2019
UPDATED 12:10:09 IST

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Technically Chana market is under short covering as market has witnessed drop in open interest by 3.45% to settled at 80510 while prices up 66 rupees.

Now NCDEX Chana is getting support at 3994 and below same could see a test of 3944 levels, and resistance is now likely to be seen at 4076, a move above could see prices testing 4108.

Chana on NCDEX settled up by 1.66% at 4045 on short covering after prices dropped as a pickup in rainfall is being considered to be a positive factor for rabi sowing. The availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.

National Agricultural Co-operative Marketing Federation of India Ltd (NAFED) is currently have stock of about 13 lakh tonnes of chana procured last year. Moreover, slow procurement progress by government for the new season crop is keeping stock levels higher with the farmers.

According to the fourth advance estimate, India Chana production of 2018-19 is estimated at 10.13 MMT which is 1 per cent higher than the third advance estimate of 10.09 MMT. Final production estimate of 2017-18 is 11.38 MMT.

This year production estimate is lower than last year due to lower acreage. All According to the latest report of ABARES, Australia chickpea acreage forecast for 2019-20 is 3.70 lakh hectares which in 22.11 per cent higher than 2018-19 acreage estimate of 3.03 lakh hectares.

Trading Ideas:
--Chana trading range for the day is 3944-4108.
--Chana prices gained on short covering after prices dropped as a pickup in rainfall is being considered to be a positive factor for rabi sowing.
--The availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.
--NAFED is currently have stock of about 13 lakh tonnes of chana procured last year.
--In Delhi spot market, chana dropped  by 7.45 Rupees to end at 4000 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 70 10200.00
Coconut Oil 2 18500.00
Arecanut 15 24500.00
Sugar NR 3900.00

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