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Wednesday, February 14, 2007
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Feb 5 2007 10:55AM
5th Feb 2007 Pulses Report

CHANA
FUNDAMENTALS  
Chana prices are easing with increasing harvest. Reports that chana harvest has started in MP, the largest chana producer, has already started weighing on prices, even though full-fledged harvest in MP will commence only in late February. Maharashtra and Karnataka will also see bumper arrivals during this period. Meanwhile, stockists in Delhi are releasing existing stocks to make room for the new crop, and also to get the best price available before the full-fledged new crop arrivals. Increase in arrivals in Delhi to 20 motors from 15 motors reveals the same. Govt. reports show chana acreage as on Feb 2, 2007 at 83.24 lakh hectares versus 76.72 lakh hectares on the same date last year. All indications are for a significantly larger crop given that weather has been supportive so far.
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
03.02.07
02.02.07
Change
Rajasthan Desi
Delhi
2500
2600-2650
-100
Kantewala
Indore
2400
2375-2400
-
Gauran
Akola
2350
2350
-
 
TECHNICALS
Chana charts are showing continued weakness in the market as prices closed below the short term EMAs. MACD is showing 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 t 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
<2140
2085
2070
2175
2043
2067
2118
2167
2183



DISCLAIMER
This report is prepared exclusively for Reliance Commodities by Indian Rural Market Products Pvt Ltd (IRMPL). The information and opinions contained in the document have been compiled from sources believed to be reliable. IRMPL does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodities. IRMPL and its affiliates and/or their officers, directors and employees may have positions in any commodities mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such commodities (or investment).


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