Chana Likely To Extend Gains

On Saturday, NCDEX Chana futures benchmark January contract closed up 0.58 % at Rs2255 per quintal, traded in the ranges of Rs2260-2235 per quintal. The open interest for the contract decreased 2.20 % to 36,760 contracts as against Friday, indicating short covering and the volume traded increased to 25,880 lots from 19,950 lots as against Friday.

In the daily technical charts, NCDEX Chana futures benchmark January contract closed above 9 day EMA of Rs2238.30 and far below 50 day EMA of Rs2277.50 per quintal, indicating short term bullishness and long term weakness. Chana January closed above 9 day SMA of Rs2225.40 per quintal, supporting the intraday bullishness.

The MACD is in the negative zone supporting downward trend. The technical indicator 14 day RSI is at 47.60, indicating that the contract is neither in the over sold or over bought region.

Technically NCDEX Chana January is having intraday resistances at Rs 2265 and Rs 2275 and supports at Rs 2240 and Rs 2225 per quintal respectively and Rs 2250 per quintal will be crucial price level.

Technically the overall trend is positive so Chana futures are expected trade with gains in today’s trading sessions .