NCDEX Chana under short covering; Resistance seen at 4478
Commodity Online | January 20 2021
UPDATED 12:10:52 IST

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Technically Chana market is under short covering as market has witnessed drop in open interest by -0.82% to settled at 33920 while prices up 13 rupees.

Now NCDEX Chana is getting support at 4434 and below same could see a test of 4408 levels, and resistance is now likely to be seen at 4478, a move above could see prices testing 4496.

Chana yesterday settled up by 0.29% at 4460 on short covering after pressure seen after Pulses sowing area jumped by nearly 109% to 8.55 lh.

Chana acreage has soared by 115% to 8.03 lh. 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 4450 Rupees per 100 kgs.

Trading Ideas:
--Chana trading range for the day is 4408-4496.
--Chana gained on short covering after prices dropped as pressure seen after Pulses sowing area jumped by nearly 109% to 8.55 lh.
--Chana acreage has soared by 115% to 8.03 lh.
--Nafed’s unstable chana releasing strategy continues to affect market directly at a time when area is up by 5 %
--In Delhi spot market, chana dropped  by 35.4 Rupees to end at 4450 Rupees per 100 kgs.

Courtesy: Kedia Commodities
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