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Wednesday, February 14, 2007
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Feb 2 2007 9:56AM
2nd Feb 2007 Pulses Report
CHANA
FUNDAMENTALS
Chana markets cooling off in prices across the board. The heated market started cooling all of a sudden yesterday when the arrivals of fresh Chana started in Madhya Pradesh. Arrivals in Maharashtra were slightly down today, as some markets remained closed, however, traders expect some good arrivals on Friday. Stockists, earlier holding their stocks, looked at offloading stocks in Delhi markets, which pulled down prices by Rs 100/qtl. Buyers are now hesitating to buy at higher prices as the harvesting in MP, the largest Chana producer, suggests likely supply pressure ahead. Prospects of Chana crop in Rajasthan is looking mixed at this stage. In Bikaner belt the crop is in good condition, whereas Churu and Tara Nagar belts are waiting for some drizzles.
TUG-OF-WAR: Bulls vs. Bears
No.
Pressure Point
Favours
1.
Production this year expected at 55 lt by industry experts on higher acreage.
Bears
2.
Higher quotes by exporters
Bulls
3.
Harvesting has not gathered momentum
Bulls
SPOT MARKET PRICES: (Rs/qtl)
Grade
Centre
01.02.07
31.01.07
Change
Rajasthan Desi
Delhi
2800
2825
-25
Kantewala
Indore
2500
2575
-75
Gauran
Akola
Closed
2475
-
TECHNICALS
Chana charts are showing weakness in the market as depicted by long dark candle formation. The prices closed well below EMA, which shows weakness in the market. MACD and Stochastic are both in favor of bears. The prices are likely to see some more correction.
WEATHER
Weather is expected to be clear in Western and Central region, which is congenial for maturing and pod forming.
TRADE RECOMMENDATION
Contract
Call
Entry
T1
T2
SL
S2
S1
PCP
R1
R2
NCDEX-Mar
Sell
<2140
2090
2070
2170
2025
2050
2115
2180
2200
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