Chana Likely To Extend Gains

On Tuesday, NCDEX Chana futures benchmark January contract closed up 0.58 % at Rs2264, traded in the ranges of Rs2268- Rs2238 per quintal. The open interest for the contract decreased 2.10 % to 35,380 contracts as against Monday, indicating short covering and the volume traded decreased to 24,610 lots from 35,980 lots as against Monday.

In the daily technical charts, NCDEX Chana January contract closed above 9 day EMA of Rs2245.40 and far below 50 day EMA of Rs2276.00 per quintal, indicating short term bullishness and long term weakness. Chana January closed above 9 day SMA of Rs2231.60 per quintal, supporting the intraday bullishness.

The MACD is in the negative zone supporting downward trend. The technical indicator 14 day RSI is at 49.37, indicating that the contract is neither in the over sold or over bought region.

Technically NCDEX Chana January is having intraday resistances at Rs 2275.3 and Rs 2286.6 and supports at Rs 2245.3 and Rs 2226.6 per quintal respectively and Rs 2256.6 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 .