NCDEX chana futures after hitting a low of 4,941 have bounced back owing to bargain buying. In the local market, sentiments were positive on account of higher than expected procurement by the government along with hopes of revival in demand. NAFED has as on June 17, procured 545,980 ton in 2021-22 marketing season. The procured quantity is however the lowest in three-years. According to sources, most of the inventories are with farmers. In the current scenario are the gains in the Futures sustainable??? If the demand revives, there could be a probability that demand from millers could increase. It could be possible because of opening up of the economy and states relaxing their lockdown norms.
Technically, July chana futures have a strong support at 4935-5000 and may face resistance at 5220-5380 levels. (CMP: 5152)