Guar yesterday we have seen that market has moved -0.75% in the line of expectation and are expected to trade lower only next session on liquidation of long positions on lack of cues from spot, Demand for churi and Korma, the by-product of guar seed has come down in the market, In the Jodhpur spot market, guar seed price dipped 42 rupees to end at 2,394 rupees per 100 kg. Because of better weather forecast there is long liquidation in the market. 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. Market has opened at 2390 & made a low of 2360 versus the day high of 2402. The total volume for the day was at 355780 lots and the open interest was at 207880.Now support for the guar is seen at 2359 and below could see a test of 2338. Resistance is now likely to be seen at 2401, a move above could see prices testing 2422.

Trading Ideas:

Guar trading range is 2371-2397.

Guar ended weak on ample stocks and liquidation of long positions on lack of cues from spot.

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 2360 and resistance look till 2470 level.

SELL GUAR MAR @ 2400-2410 SL 2426 TGT 2390-2372-2356-2340. NCDEX

In the Jodhpur spot market, guar seed price dipped 42 rupees to end at 2,394 rupees per 100 kg.