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Commodity
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Pulses
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Jul 30 2007 9:36AM
Arrivals of 69,166 tonnes Peas during the week.
CHANA
FUNDAMENTALS
Bearish sentiments continued in Chana spot markets even as arrivals in the market were weak. Delhi received 20 motors against the previous 25-30 motors. In Bikaner, 100 bags arrived against 300 bags on the previous day. But lower demand featured in the market leading to sluggish prices. Deterioration of quality of Chana (Dank and Dagi) affected the sentiments in the market. Prices softened by Rs.15-20 in Delhi and Indore market due to lower demand in the market, whereas it dipped by Rs.25-45 in Kanpur, Akola, Jalna and Bikaner due to lower buying interest in the market. Reports of strong speculative selling by interested parties are casting a shadow on the futures and spot market. Thus markets are expected to be weak in the near future.
TUG-OF-WAR: Bulls vs. Bears
No.
Pressure Point
Favours
1.
Govt. importing pulses through PSUs
Bears
2.
Exch. stocks reached 42,282 tonnes.
Bears
3.
Deterioration in quality (
dank
) in Chana
Bears
4.
Arrivals of 69,166 tonnes Peas during the week.
Bears
SPOT MARKET PRICES: (Rs/qtl)
Grade
Centre
28.07.07
27.07.07
Change
Rajasthan Desi
Delhi
2310
2325
-15
Kantewala
Indore
2340
2360
-20
Desi
Bikaner
2115
2150
-35
TECHNICALS
Chana chart shows a dark marubozu candle, indicating strong selling pressure in the market. MACD and EMA patterns have become very weak. The RSI & Stochastic are deep in oversold region. Prices have fallen below support at 2268-2270, which marked the previous low, indicating further selling can be expected. Chana is expected to trade bearish after a steady to slightly weak opening with possibility of a late recovery.
WEATHER
Continuing weak phase in monsoon is threatening kharif pulses output.
TRADE RECOMMENDATION
Contract
Call
Entry
T1
T2
SL
S2
S1
PCP
R1
R2
NCDEX-Aug
Sell
< 2223
2208
2203
2230
2185
2192
2223
2265
2281
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