Guar yesterday we have seen that market has moved -2.1% due to higher output estimates, weakness in spot and arbitrage trade. Guar seed output in Rajasthan, the top producing state in the country, is expected to rise to 1.51 million tonnes in 2010/11 boosted by higher area and good monsoon rains. In the Bikaner spot market, guar seed fell 23 rupees to 1,956 rupees per 100 kg. In Jodhpur guar prices gained 7.1 rupees to 1996.85 rupees per 100 kg. Market has opened at 2058 & made a low of 1993 versus the day high of 2075. The total volume for the day was at 235990 lots and the open interest was at 152510. Now support for the guar is seen at 1976 and below could see a test of 1943. Resistance is now likely to be seen at 2058, a move above could see prices testing 2107.

Trading Ideas:

Guar trading range is 1943-2107.

Guar settled weak due to higher output estimates

Guar is taking resistance at 2058 and support is seen at 1976.

NCDEX accredited warehouses guar stocks rose 1061 tonnes to 22730 tonnes.

In Jodhpur guar prices gained 7.1 rupees to 1996.85 rupees per 100 kg.