Guar extended intra-day losses to hit 4 percent lower circuit weighed by weak overseas demand for guar gum, sufficient stocks and dull cues from spot market. Stockists are clearing off their stocks on apprehensions of further correction in prices. In Rajasthan output is likely to drop by 80 percent to 241,000 tonnes in 2009/10 as scanty rains trimmed area and yields. In the Jodhpur spot market, guar price dropped 30 rupees to 2,339 rupees per 100 kg. Guar yesterday we have seen that market has moved -3.37%. Market has opened at 2375 & made a low of 2290 versus the day high of 2378. The total volume for the day was at 269600 lots and the open interest was at 199470.Now support for the guar is seen at 2261 and below could see a test of 2231. Resistance is now likely to be seen at 2349, a move above could see prices testing 2407.

Trading Ideas:

Guar trading range is 2245-2340.

Guar hits 4% lower circuit weighed by weak overseas demand and dull cues from spot market

Guar is taking support at 2261 and resistance at 2312 level.

In Rajasthan output is likely to drop by 80 percent to 241,000 tonnes in 2009/10

In Jodhpur prices fell by over 30 rupees 2339 rupees

BUY GUAR FEB ABV 2300 SL 2280 TGT 2318-2334-2356.NCDEX