Guar seed yesterday we have seen market has moved 0.56% that is Rs.16/- higher than the previous day and settle at 2511 per 100 kg. Market has opened at 2498 and traded flat and in the range we have seen market made a low of 2485 versus the day high of 2535. Guar is likely to hold its gain in the coming session on the support from the spot market where Guarseed has gained 25 rupees and closed at 2492 per 100 kg on the improvement in the overseas enquiries and lower output with thin arrivals. The total volume for the day was at 286590 lots and the open interest was at 213030. In top guar producer Rajasthan, output is likely to drop by 80 percent to 241,000 tonnes in 2009/10 as scanty rains trimmed area and yields. Now support for the guar is seen at 2486 and below could see a test of 2460. Resistance is now likely to be seen at 2536, a move above could see prices testing 2560.

Trading Ideas:

Guar trading range is -1690-3380.

Guar ended higher on support from spot market, improvement in overseas enquiries, estimates of lower output.

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 2486 where buying is expected for overall resistance look till 2560 level.

BUY GUAR MAR @ 2500-2510 SL 2478 TGT 2526-2638-2660. NCDEX

In the Jodhpur spot market, guar seed price gained 25 rupees to end at 2,492 rupees per 100 kg.