Guar hit new contract highs in early trade before settling up on prospects of lower crop and squeezed supplies. Forecast of lower output buoyed guar to contract highs but profit-taking could not be ruled out at these levels as investors would now wait for fresh overseas cues. Guar yesterday we have seen that market has moved 1.08%. Market has opened at 2597 & made a low of 2596 versus the day high of 2638. The total volume for the day was at 343860 lots and the open interest was at 194670. Now support for the guar is seen at 2601 and below could see a test of 2577. Resistance is now likely to be seen at 2643 a move above could see prices testing 2661.

Trading Ideas:

GUAR TRADING RANGE IS 2575-2665.

GUAR HIT NEW CONTRACT HIGHS DUE TO FORECAST OF LOWER OUTPUT.

BUY GUAR DEC @ 2610-2620 SL 2595 TGT 2634-2652-2665.NCDEX.

NOW SUP IS AT 2601 BELOW THIS NEXT SUP IS AT 2577-2558 LVL.

GUAR IS TAKING RESIST OF 2643 ABV THIS NEXT RESIST AT 2661-2686.

IN BIKANER PRICES GAINED BY RUPEES 22 AND ENDED AT 2558.75 RUPEES PER 100 KG.