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Wednesday, February 14, 2007
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Feb 7 2007 10:13AM
7th Feb 2007 Pulses Report
CHANA
FUNDAMENTALS
Chana prices eased further at most trading centres as healthy arrivals and poor demand for dal pressured prices. The arrivals of 70 motors were seen in Delhi from Maharashtra, which depressed prices by another Rs 50. In Latur, the prices dipped below Rs 2000 per quintal mark and Gauran Chana sold as low as Rs 1950 per quintal during the day. Breaching of psychological levels of Rs 2000 per quintal signals a bearish trend in the market. Though arrivals in the major producer MP have still not picked up much, forthcoming good crop is adding to psychological pressure on the prices. It is expected that the prices would get support as the stockists come in picture at lower levels. Further, the firmness in other pulses would also lend some support to the Chana prices.
TUG-OF-WAR: Bulls vs. Bears
No.
Pressure Point
Favours
1.
Harvesting in MP has started
Bears
2.
Good arrivals in Maharashtra and Karnataka
Bears
3.
Acreage up by 7 lakh hectares this year
Bears
SPOT MARKET PRICES: (Rs/qtl)
Grade
Centre
06.02.07
05.02.07
Change
Rajasthan Desi
Delhi
2300
2400
-100
Kantewala
Indore
2200
2225-2250
-25
Gauran
Akola
2200
2300
-100
TECHNICALS
Chana charts are showing continued weakness in the market. The prices have fallen below the short term EMAs, which indicates a weak trend. MACD shows decrease in bullish momentum, whereas Stochastic is negative in neutral region. The prices are likely to see some volatility with bearish bias.
WEATHER
Clear weather for Chana is expected in Western and Central regions, which is congenial for maturing and pod forming.
TRADE RECOMMENDATION
Contract
Call
Entry
T1
T2
SL
S2
S1
PCP
R1
R2
NCDEX-Mar
Sell
<2100
2050
2035
2130
2014
2041
2079
2111
2142
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