NCDEX Chana under short covering; Resistance seen at 4134
Commodity Online | July 22 2020
UPDATED 12:10:08 IST

MCX Gold under fresh selling; Support seen at 50092

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343

MCX Crude Palm Oil under short covering; Support seen at 781.3

Technically Chana market is under short covering as market has witnessed drop in open interest by 7.58% to settled at 68070 while prices up 1 rupees.

Now NCDEX Chana is getting support at 4102 and below same could see a test of 4085 levels, and resistance is now likely to be seen at 4134, a move above could see prices testing 4149.

Chana yesterday settled up by 0.02% at 4118 as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments. However, reports of NAFED started releasing its stocks have arrested uptrend in Chana.

Further, higher production estimates this year also weighed on the sentiments. The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states under price support scheme.

As of Jun 30, 2020 NAFED has procured 20.55 lakh tonne Chana. Chana import for 2019-20 (Apr-Mar) stood at 3.71 lakh tonnes as against 1.86 lakh tonnes imported during the corresponding period of the previous year.

Apart from Chana, it has been reported that around 6.67 lakh tonnes of Pea has been imported during 2019-20 (Apr-Mar) and total pulses import stood at 29.75 lakh tonnes.

Canada Government in its June month report informed the Chickpea area seeded is expected to decrease sharply from 2019-20 due to difficulties during previous harvest and lower yields.

After three years of drought, Australia will see its crop production spike in 2020-21, according to the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).

Trading Ideas:
--Chana trading range for the day is 4085-4149.
--Chana prices gained as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments
--The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states
--NAFED has extended procurement period for Chana in Madhya Pradesh up to 29th July 2020.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4081.65 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 10300.00
Coconut Oil 0.1 18100.00
Arecanut 4 36588.00
Sugar 30 3550.00

More