Guar yesterday we have seen that market has dipped by more than 1.05% and closed lower, weighed by dull trade in the spot market and estimates of higher production, in the Jodhpur spot market in Rajasthan, guar seed fell 9 rupees to end at 2,344 rupees per 100 kg. Guar seed output in Rajasthan, the country's top producer, is expected to rise to 1.51 million tonnes in 2010/11, boosted by higher area and good monsoon rains. Tracking sluggish trade in spot due to estimates of higher output but good demand for guar gum restricted the downside. Projection of higher output is weighing on sentiment and may keep the prices under pressure. Market has opened at 2467 & made a low of 2432 versus the day high of 2476. The total volume for the day was at 156440 lots and the open interest was at 165490. Now support for the guar is seen at 2422 and below could see a test of 2405. Resistance is now likely to be seen at 2466, a move above could see prices testing 2493.

Trading Ideas:

Guar trading range is 2406-2494.

Guar ended lower weighed by dull trade in the spot market and estimates of higher production

Guar is taking resistance at 2467 and support is seen at 2423.

NCDEX accredited warehouses guar stocks settled at 51572 tonnes.

SELL GUAR JAN @ 2450-2460 SL 2485 TGT 2422-2400.NCDEX

In Jodhpur guar prices dropped -9.45 rupees to 2343.9 rupees per 100 kg.