Commodity Calls

Bulls gaining traction in NCDEX-Chana

Akhil Nallamuthu BL Research Bureau | Updated on February 04, 2021

The futures price of Chana on the National Commodity and Derivatives Exchange (NCDEX), after registering a high of ₹5,607 in early October last year, reversed the direction and started moving southwards. The decline was strong and as a result, the price dropped below the crucial support of ₹5,000 in December and extended the downswing.

This resulted in the March futures contract hitting a low of ₹4,353 by the end of last year.

But by then, the bears had lost momentum and what followed was a sideways trend wherein the contract was oscillating between ₹4,400 and ₹4,570. This trend continued until yesterday and the futures witnessed good buying interest and broke out of the range on Thursday with good volume.

Thus, the contract seems to have made a genuine attempt towards a bullish trend reversal.

On the upside, the nearest resistance is at ₹4,730. A breach of this level can lift the price to the subsequent resistance at ₹4,800.

Traders can buy the contract with stop-loss at ₹4,550.


Published on February 05, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like