Chana under short covering

Chana market is under short covering as market has witnessed drop in open interest by 2.5% to settled at 19510 while prices up 64 rupees.

Now NCDEX Chana is getting support at 4643 and below same could see a test of 4583 level, And resistance is now likely to be seen at 4752, a move above could see prices testing 4801.

Chana on NCDEX settled up 1.38% at 4704 on concerns of a decline in acreage this season and curb on pulses imports. Chana prices were higher as farmers are not ready to sow pulses this year due to insufficient procurement by government and weak prices for pulses.

Chana was sown on 6.265 million hectares as on Nov 22 compared to 7.198 million hectares in the same period a year ago, according to the data from the Ministry of Agriculture. Meanwhile, stocks of chana in physical market are lower as government extended the import restriction till December.

The government raised the import duty to 60% from 40% on chana in March this year to restrict cheaper imports and to help farmers following a record harvest.

Year to date chana gained over 19%, and on Nov 21, the commodity touched a high of Rs 4,791 per quintal — its highest level since Nov 28, 2017 due to import curbs and lower acreage.Nafed sold 55,100 tons of gram in Andhra Pradesh while in Telangana the agency sold 27,301 tons.

The cooperative firm released 83,750 tons and 30,497.01 tons of chana in Karnataka and Maharashtra while in Gujarat, Madhya Pradesh and Rajasthan the agency sold 37,906 tons, 10,920 tons and 47,717 tons, respectively Chana stocks are diminishing due to higher domestic consumption and lower imports of chana due to 60% import duty since March 2018.1.

Trading Ideas:
–Chana trading range for the day is 4583-4801.
–Chana gained on concerns of a decline in acreage this season and curb on pulses imports.
–Chana prices were higher as farmers are not ready to sow pulses this year due to insufficient procurement by government and weak prices for pulses.
–NCDEX accredited warehouses Chana stocks gained by 152 tonnes to 13683 tonnes.
–In Delhi spot market, chana gained  by 15.35 Rupees to end at 4515.35 Rupees per 100 kgs.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *