NCDEX Chana under short covering; Resistance seen at 4433
Commodity Online | January 15 2021
UPDATED 12:10:05 IST

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Technically Chana market is under short covering as market has witnessed drop in open interest by 55.18% to settled at 2510 while prices up 8 rupees.

Now NCDEX Chana is getting support at 4403 and below same could see a test of 4387 levels, and resistance is now likely to be seen at 4433, a move above could see prices testing 4447.

Chana yesterday settled up by 0.18% at 4420 as Nafed’s unstable chana releasing strategy continues to affect market directly at a time when area is up by 5 % and the new crop is hardly one and a half month away.

Nafed continued to fix reserve price and changed it frequently from Rs 5600 to Rs. 5100, again Rs. 5100 to Rs. 4875. Apart from it has offered 5 to 10 % discount over previous MSP on particular centers.

As offtake from central pool is lower, Nafed may decrease price further to vacate storage space for new procurement. It would not allow chana cash market to go up beyond a certain level. Delhi chana is being traded at Rs4550-4650.

Demand is weak. Weather condition in Jan –Feb remains crucial. The latest data shows that the total area of pulses has increased by 7% to 141 lakh hectares. More sowing is done in Maharashtra, Odisha and Jharkhand as compared to last year.

Gram cultivation has increased by about 10%. NAFED to sell Gram PSS Rabi-2020 stock from all the States at or above base prices of Rs. 5100 per quintal in the month of December 2020, it offers an initial quantity of 1.5 LMT of Gram, for the month of December 2020. In Delhi spot market, chana dropped by 35.4 Rupees to end at 4441.65 Rupees per 100 kgs.

Trading Ideas:
--Chana trading range for the day is 4387-4447.
--Chana ended with small gains as Nafed’s unstable chana releasing strategy continues to affect market directly
--Chana sown area is up by 5 % and the new crop is hardly one and a half month away
--Nafed has offered 5 to 10 % discount over previous MSP on particular centers.
--In Delhi spot market, chana dropped  by 35.4 Rupees to end at 4441.65 Rupees per 100 kgs.

Courtesy: Kedia Commodities
Commodity Arrivals Rate
Mustard Oil 3 14200.00
Ghee 25 39650.00
Coconut Oil 0.1 18800.00
Tamarind 12 1400.00

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