NCDEX Chana to trade bullish for short term


Chana May contract is likely to trade positive for short term and bullish for intra day with short term support at 3900 and resistance at 4100. Intra day support is seen at 3950 and resistance at 4030.

A lower than expected Monsoon rainfall prediction by the IMD had a bullish impact on Chana rates as the sowing of Kharif Pulses like Tur, Urad and Moong are likely to get adversely affected. Higher imports and lower production possibilities could lead to further firmness in prices even as they find strong resistance near the 4000 levels.

At NCDEX Chana May contract rose 1.08% to 4010 level on Thursday(11.15am). According to Milan Shah, agri research analyst at commodity Online, Chana May contract is likely to trade positive for short term and bullish for intra day with short term support at 3900 and resistance at 4100. Intra day support is seen at 3950 and resistance at 4030.

As per 2nd Advance Estimates for 2014-15, total foodgrains production in India is estimated at 257.07 million tons– lower by 3% w.r.t. 265.57 million tons previous year. Production of pulses estimated at 18.43 million tonnes is lower by 1.35 million tonnes than the last year’s production.

Chana production estimated at 8.28 million tons vs 9.53 million tons last year. Urad production expected to shrink by 5% to 16.10 lakh tons from 17 lakh tons. Moong production to fall to 14 lakh tons from 16.10 lakh tons.

In order to keep prices for Pulses under check, the Govt has decided to extent duty-free imports till Sept. Unseasonal rain in March brought a heavy loss to crops of pulses.

Indian farmers have cultivated 146 lakh hectares pulse crops during the rabi season. Out of this chana acreage is near 85 lakh hectares. Pules production is estimated to fall to 184.3 lakh tons in 2014-15 due to less acreage. Last year 197.8 lakh tons of pulses were produced in the country.