Guar yesterday ended higher and moved 0.98%, market has opened at 2441 & made a low of 2429 versus the day high of 2477 and seems that firmness will continuous to prevail in the market on estimates of lower output and thin arrivals also some buying has been witnessed in the market with overseas enquiries. In the Jodhpur spot market in Rajasthan, guar seed price gained 18 rupees to 2,436 rupees per 100 kg. This year guar output is likely to drop by 80 percent to 241,000 tonnes in 2009/10 as scanty rains trimmed area and yields. Guar traded with the volume at 298980 lots and the open interest was at 201400. Now support for the guar is seen at 2434 and below could see a test of 2408. Resistance is now likely to be seen at 2482, a move above could see prices testing 2504.

Trading Ideas:

Guar trading range is 2461-2505.

Guar traded positive as output and thin arrivals also some buying with overseas enquiries

Guar output is likely to drop by 80% to 241,000 tonnes in 2009/10 as scanty rains trimmed area and yields.

Important support to the market is at 2428 where buying is expected for overall resistance look till 2512 level.

BUY GUAR MAR @ 2440 SL 2408 TGT 2465-2478-2490.NCDEX

In the Jodhpur spot market in Rajasthan, guar seed price gained 18 rupees to 2,436 rupees per 100 kg.