Chana down on selling by govt agencies, low demand

Chana futures in the next 5-6 trading sessions are seen weak on lack of revival of festival demand and selling of pulses by state-run agencies in the open market, analysts and traders said.

However, they suggested selling of chana futures only on pull-back rallies. "On the National Commodity and Derivatives Exchange, September chana can decline to Rs 2,218 per 100 kg and later to Rs 2,180," said a research analyst at a Delhi-based firm of analysts.

According to Amit Agarwal of Motilal Oswal Commodities, October contract is likely to face resistance at Rs 2,330 per 100 kg and test the levels of Rs 2,240 and Rs 2,200 on the downside. Today, October contract was trading in a range of Rs 2,260-Rs 2,300 per 100 kg.

As the contract saw a huge build-up of short positions last week, it could see a corrective rally on covering of these positions. Fresh selling is advised only on a pull-back rally, Agarwal said.

"Offloading of lemon tur stock by government agencies below the current market price is sending bearish signals on pulses spot market," he said. According to market sources, state-run agencies have recently sold lemon tur at Rs 2,200-2,250 per 100 kg, a discount of nearly Rs 150 to the market price, he added.