Chana moves sideways on stock clearance

Chana futures on the National Commodity and Derivatives Exchange are likely to show sideways movement with a negative bias due to selling by stockists "" who prefer other pulses and soybean "" coupled with prospects of higher rabi crop acreage, analysts and traders said today.

"October chana has strong resistance at Rs 2,306 per 100 kg, while if it breaks the level of Rs 2,265 on the downside, it can see a sharp fall," said Suresh Mantri, analyst at Ventura Commodities.

Prolonged rain in most chana-growing areas of Maharashtra, Madhya Pradesh and north India has created favourable soil and weather conditions for rabi (chana) sowing, Mantri said. Hence, futures will continue to be under the shadow of likely higher acreage, he said.

Concurring with this view, an analyst at a Delhi-based brokerage said, "Fall in temperatures and increased soil moisture level in Maharashtra, Madhya Pradesh augurs well for chana sowing that will start shortly." Chana prices are likely to remain under pressure also due to de-stocking in Maharashtra, Madhya Pradesh, and Rajasthan, the analyst said. "Since kharif output of moong and urad in Maharashtra and moth in Rajasthan has been very high, stockists are likely to offload chana to make room for these crops," he said.

According to him, the near-month October contract is unlikely to breach the level of Rs 2,300 per 100 kg, and it can fall to Rs 2,200.